The Aussie market is back to its winning ways, with the ASX 200 up 0.77 per cent to 6,226.9. This is more than enough to recoup yesterday’s modest decline, is its eighth gain in nine sessions and has hit a fresh seven-month high in the process. Encouraging data on employment in Australia and the RBA keeping the door open for further easing has helped.
Major mining stocks, including BHP, RIO and South32 (S32), are pushing the market higher. Energy stocks like Woodside (WPL) and Origin (ORG) are also helping thanks to a lift in the oil price overnight. A weekly report highlighted a drop in the amount of oil being held in the US over the past week.
Redbubble (RBL) is one of the strongest performers at lunch, surging by 14 per cent thanks to the release of a solid quarterly update. RBL has generated $147.5m in revenue over the past three months (a 116 per cent lift on last year) while gross profit jumped to $64.5m. The company has done well during the pandemic thanks to a lift in online spending and a jump in people starting side hussles. The print on demand website allows independent artists to have their artwork printed on everything from t-shirts, mugs, masks and blankets, takes care of the fulfilment, payment and printing and then shares a portion of the profits with the artist.
IDP Education (IEL) – a company that engages in the placement of students into education institutions – is down 9 per cent after Education Australia (its largest investor) said its 38 university shareholders are rethinking their investment in the company due to COVID-19.
Whitehaven Coal (WHC) is up 6 per cent after posting a 13 per cent lift in coal sales over the past quarter and a 4 per cent lift in production. WHC operates coal mines in NSW and Queensland. While media reports in recent days have suggested that Beijing has requested some companies not buy Australian coal, WHC only sells a small portion of its coal to China. The lion’s share of its coal exports head to Japan.
Webjet (WEB), Healius (HLS), Mortgage Choice (MOC) and the Brisbane Broncos (BBL) are all paying eligible investors dividends today.
There were 29,500 jobs lost in September while the unemployment rate edged higher to just 6.9 per cent. The market was anticipating 40,000 job losses and the unemployment rate to hit 7 per cent. The Australian dollar edged higher modestly on the results.
2.7bn shares have changed hands so far, worth $2.7bn. 737 stocks are up, 419 down and 356 are unchanged.
Published by CommSec