Home / Daily Market Update / Fresh highs for ASX200 as stocks gain 1.3%

Fresh highs for ASX200 as stocks gain 1.3%

Daily Market Update

ASX joins the record breaking party, A2 Milk drained, Crowning the Star 

The ASX200 (ASX:XJO) finally joined the global party hitting an all-time high of 7,172 points on Monday.

The list of constituents trading at similar records also continues to grow, with both BHP Group (ASX:BHP) and Rio Tinto (ASX:RIO) up +3.1% and 4.6% respectively, hitting their own all-time highs today as the iron ore price jumped 10% on Friday to US$212 per tonne.

  • The incredible rally comes on the back of huge US and European steel demand forcing China to ramp up production.

    A2 Milk (ASX:A2M) fell 13.1% but did little to detractor from the jubilance after the company reported little improvement on the pricing, sales, and inventory levels of the stock being sold through ‘daigou’ channels into China.

    Sales for the quarter were $295 million with revenue estimates reduced to between $1.2 to $1.25 billion for the full year, management expects this to extend into FY22.

    Retail sales rose 1.3% in March, further solidifying the economic recovery driven by a recovery in café and restaurant spending, online sales remain just 9.4% of the total.

    Bidding war for Crown heats up, Pendal doubling down again, Incitec reboots

    The bidding war for embattled casino operator Crown Ltd continues to heat up, with competitor Star Entertainment Group (ASX:SGR) lobbing a $12 billion bid for the company, ahead of private equity offers.

    The group highlighted cost savings of over $100 million and plans to fund the deal through a merger in which shareholders would receive 2.68 SGR shares for every Crown share, who would own 59% of the combined company. The cash value is around $12.5 with both the share prices adding 7.3% and 7.7% respectively.

    Despite the activity, Crown announced that ex Lend Lease CEO Steve McCann would be joining as the new CEO. This deal would obviously need to overcome competition and receive a number of other approvals.

    Asset manager Pendal (ASX:PDL) has announced another acquisition, buying Thompson Siegel & Walmsley for $413 million which will be funded by a $190 million capital raising at $6.80 per share.

    Ammonium producer Incitec Pivot (ASX:IPL) was the other major detractor, falling 8.9% after announcing their struggling production plant in the US would need to be shut down for a second time with major repairs needs. Once again, this highlights the company specific risks sitting in a buoyant sharemarket.

    Inflation concerns hit technology sector, India virus mutation, pipeline hack

    Investors have become increasingly wary of an impending spike in the consumer price index, the measure for inflation, with both iron ore and copper hitting record highs.

    The report is due on Thursday Australian time, but traders have moved in advance, sending the highly valued Nasdaq down 2.6% to begin the week.

    Apple (NYSE:AAPL) and Amazon (NYSE:AMZN) were among the biggest detractors, down 2.6% and 3.1% respectively.

    The Dow Jones briefly traded above 35,000 points but ended up falling 0.1% despite the energy sector spiking after a key US pipeline was shut down due to a cyberattack. The S&P500 also fell 1.0%.

    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