The ASX climbed higher for the third straight day with miners and travel stocks gaining ground as one tech firm rocketed.
The Australian sharemarket crept higher for the third straight day with miners and travel stocks gaining ground, while a well-positioned tech company rocketed.
The S&P/ASX200 strengthened 0.39 per cent to 7531.9 while the All Ordinaries Index surged 0.46 per cent to 7809.6.
The local bourse has recouped about 40 per cent of last week’s losses over the past three days.
“What has been extremely helpful in recent days has been the fact commodity prices have for the most part stopped their heavy falls that we’ve seen in the past week,” CommSec analyst Steve Daghlian said.
“That’s really been supportive for mining and energy stocks.
“Oil was up 2.9 per cent to $US67 per barrel – mind you, this follows seven days of losses.
“The iron ore price up almost 9 per cent to $US148 per tonne but again, in perspective, the iron ore price is still about 36 per cent below the records we hit in the middle of May.”
OMG chief executive Ivan Tchourilov said the price disparity between iron ore and the rest of the ingredients that made up steel meant it had to bounce back eventually.
“Mixed messages from the Chinese government has the price moving every which way, with calls for stimulus in the infrastructure sector meaning demand for steel could remain while they get the economy back to pre-Covid levels,” he said.
Rio Tinto rose 2.6 per cent to $110.91, BHP improved 1.25 per cent to $45.48, Fortescue gained 2.63 per cent to $20.28 and Mineral Resources put on 3.5 per cent to $53.92.
Mr Tchourilov said the oil price rise came as economists questioned whether OPEC would stick to its plan to increase output towards the end of year while Delta ran rampant.
“Throw in a weakening US dollar and maybe last week’s panic was a little over done,” he said.
Origin Energy appreciated 2.5 per cent to $4.51 and Santos firmed 0.33 per cent to $6.16.
Mr Daghlian said it was interesting travel stocks fared well given the record 919 new Covid cases recorded in NSW, with Flight Centre jumping 7.42 per cent to $16.35 and Qantas advancing 5.4 per cent to $4.87.
“But NSW hit that 6 million dose milestone yesterday so that seems to be providing some hope,” he said.
Logistics software company WiseTech was the star of the show, leaping 28.45 per cent to $46.50 after booking an 18 per cent rise in full-year revenue, at the top end of its guidance range.
“It also is forecasting growth of as much as 38 per cent in profits in 2022,” Mr Daghlian noted.
Founder and chief executive Richard White said a “goods-led” recovery in global trade continued and logistics channels were upping their investment in replacing legacy systems with integrated global technology, such as the company’s CargoWise product.
“We have continued to gain momentum in our market penetration with six new CargoWise global rollouts by large global freight forwarders secured in FY21, and the signing of FedEx post June 30,” he said, adding a strong pipeline of potential new global customers was being actively pursued.
WiseTech shares soared as high as $57.31 in intraday trade, prompting a speeding ticket from the ASX.
“Not shying away from a cautious outlook since the beginning of the pandemic, the company had adopted the philosophy of ‘under promise over deliver’,” Mr Tchourilov said.
“Setting realistic guidance and moving swiftly to address the potential impacts of Covid, the logistics company gained the trust of shareholders.
“And now that it’s smashed through initial estimates, new bullish guidance has the market in a frenzy.
“Given the logistical nightmare Covid has created worldwide, they’re well positioned to capitalise.”
Buy-now-pay-later provider Zip booked record full-year revenue, up 150 per cent, but its net loss of $652.5m was a massive jump from a $20m loss previously, sending its shares 2.6 per cent lower to $7.13.
Ord Minnett said the result was below its expectations due to higher costs.
“This has been a recurring theme in the BNPL sector in this reporting season,” Ord Minnett said.
BNPL market leader Afterpay also booked a huge rise in full-year net loss to almost $160m, from $22.9m previously, and reported higher employment, marketing and operating expenses costs.
UBS noted the headline figure was pre-reported, while Wilsons Equity Research said underlying sales trends, margins and operating conditions were continuing as expected with few (if any) surprises.
Afterpay expects its multi-billion dollar takeover by US digital payments company Square, run by Twitter co-founder Jack Dorsey – believed to be the biggest buyout in Australian corporate history – will be complete in the March quarter next year.
Shares in Afterpay dropped 1.18 per cent to $133.50.
Online retail marketplace MyDeal booked a $5.85m full-year net loss, a big turnaround from its near $850,000 net profit for 2019-20.
But active customers grew 83 per cent while repeat business was up strongly, with almost 60 per cent of June quarter sales by returning customers, which RBC Capital Markets analyst Chami Ratnapala said was pleasing to see.
MyDeal shares sank 11.9 per cent to 74 cents.
Orocobre officially absorbed fellow lithium miner Galaxy under their merger and announced a name change to Allkem Ltd.
“The merger consolidates the combined group’s position in Argentina and provides an opportunity to build on a strong platform there and in our other key jurisdictions globally, including Australia, Japan and North America,” chief executive Martín Pérez de Solay said.
Orocobre booked a full-year net loss of almost $US90m ($A124.2m), mainly due to Argentine tax rate changes.
Orocobre shares were up 3.7 per cent at $9.52.
ANZ gained 0.28 per cent to $28.47, Commonwealth Bank lifted 0.4 per cent to $100.32, National Australia Bank rose 1.02 per cent to $27.68 and Westpac added 0.93 per cent to $26.15.
The Aussie dollar was fetching 72.42 US cents, 52.73 British pence and 61.65 Euro cents in afternoon trade.
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