Home / Daily Market Update / ASX 200 hits 7,000 points for the first time in 13 months

ASX 200 hits 7,000 points for the first time in 13 months

Daily Market Update

ASX breaches 7,000, record highs all around, Westpac hit with ASIC case

The ASX200 (ASX:XJO) delivered another positive day, finishing 1.0% higher spurred on by an improving global economic outlook.

Market sentiment is overcoming growing issues with the vaccine rollout and risk of mutations, with materials the biggest beneficiary jumping 1.8% behind BHP (ASX:BHP) and Rio Tinto (ASX:RIO) both of which finished more than 2% higher.

  • As mentioned, the ASX200 is now nearing an all-time high closer to 7,200 points but it is clearly a stock pickers market.

    A growing list of companies are now trading at record highs including lithium and iron ore miner Mineral Resources (ASX:MIN), plumbing supplies distributor Reece Ltd (ASX:REH), metal detector Codan (ASX:CDA), and conglomerate Washington H Soul Pattinson (ASX:SOL).

    There are clear reasons for many of these companies to be reaching record highs, including commodity prices, but the valuation of many may seem excessive to traditional ‘value’ focused investors.

    Scentre gets a strike, McPherson’s rejects takeover, coal reaches two year high

    Scentre Group (ASX:SCG) received a first strike against the remuneration of its board members, with proxy groups clearly disappointed with the amount of ‘pain’ they shared with their retail tenants during the pandemic.

    On the positive side, management confirmed some $600 million in rental collections and a continuation of the foot traffic strength in late 2020, the result being a minimum dividend of at least 14 cents per share.

    The share price was flat by competitor Vicinity (ASX:VCX) jumping 0.3% on the news.

    Westpac (ASX:WBC) is facing more court action with ASIC launching civil proceedings relating to the sale of consumer credit insurance, this time to just 384 customers.

    The proceedings allege that these customers may not have requested or agreed to acquire the product.

    Health and wellness product distributor McPherson’s (ASX:MCP) including Multix kitchen products have rejected an offer from a Raphael Geminder backed group, suggesting the 9.8% premium to the share price undervalued the company; shares jumped 1.4%.

    Records continue to fall, Brazil’s deadliest day, unemployment higher

    The US market continues to deliver, the S&P500 testing new record highs and ultimately 0.4% as the technology sector reasserts its dominance.

    The Nasdaq was the standout, jumping over 1% with the Dow Jones a more pedestrian 0.2% gain.

    Companies ranging from digital payments, including PayPal (NYSE:PYPL) to social networks, Twitter Inc. (NYSE:TWTR), are all benefiting from what is termed ‘dovish’ statements from the central bank and a pause in the recent spike in bond yields that had triggered concerns about inflated valuations.

    Unemployment claims were unexpectedly higher adding 16,000 to 744,000, well above the 694,000 economists expected.

    This suggests the slow opening up and growing concerns with the Astra Zeneca vaccine may result in a less smooth economic recovery than predicted.

    This is highlighted by what has been deemed the deadliest days of the pandemic for the likes of Brazil and India, struggling with huge population centres and virus mutations, a long way from our almost normal way of life in Australia.

    Industrials, property push ASX lower, RBA hikes again, Woolworths guides to higher sales

    The local market fell sharply on the back of an unexpected 0.25 per cent interest rate increase by the Reserve Bank of Australia. The news took the cash rate to 3.85 per cent, adding more pressure to household balance sheets and came despite most experts suggesting hikes had come to an end. The hardest hit…

    Drew Meredith | 3rd May 2023 | More
    ASX boosted by the energy sector, Origin upgrades outlook, Best & Less gets a bid

    The local sharemarket finished 0.4 per cent higher on Monday, buoyed by the energy and utilities sectors, which gained 1.3 and 1 per cent, despite the oil price continuing to fall. The sector was buoyed by an earnings upgrade from Origin Energy (ASX:ORG) which sent shares 0.5 per cent higher with AGL Energy (ASX:AGL) also…

    Drew Meredith | 2nd May 2023 | More
    Upbeat start to week – and month – likely for Aussie market

    After a strong session for global markets on Friday, Australian shares will take a positive lead into the new week – and month. The Australian benchmark index, the S&P/ASX 200, added 16.5 points, or 0.2 per cent, on Friday, to 7,309.2, but eased 53 points, or 0.7 per cent over the week. ASX futures trading…

    James Dunn | 1st May 2023 | More