Home / Daily Market Update / ASX closes 0.5% higher with mining and tech boost

ASX closes 0.5% higher with mining and tech boost

Daily Market Update

ASX snaps losing streak, tech platforms jump, South 32’s big deal
 
The S&P/ASX200 (ASX: XJO) broke a three-day losing streak to finish 0.5% higher, however, a late sell off in the banking sector meant gains of as much as 1.2% were reversed.
 
The financials and energy sector were the primary drags, down 0.9 and 0.5% as investors seek out higher quality, less cyclical businesses.
 
The tech sector was once again the standout, jumping over 4% and the industrial sector gaining on another strong report from investment platforms Hub 24 (ASX: HUB) and Netwealth (ASX: NWL).
 
These stocks finished 15 and 8% higher respectively after reporting record inflows on their administration, reporting and super platforms.
 
In the case of Netwealth, the group reported $4 billion in inflows in the September quarter, taking the total to $52 billion and now expects a total of $12.5 billion over the full year.
 
It was a similar story for Hub 24, reporting $3 billion in inflows, a quarterly record taking funds under administration to $63.2 billion; this doubled the group’s market share.
 
Despite the positive news, analysts have begun to suggest the record inflows may begin to slow giving growing pressure on the financial advice sector.
 
Unemployment pain, Redbubble struggles post pandemic, South32 buys copper
 
The lingering pain of the pandemic lockdowns was on show today with the economy losing 138,000 jobs in September, taking the total losses since August to $280,000.
 
There are 110,000 fewer people in work but more concerningly, the participation rate dropped by 0.7%, for the third consecutive month, suggesting many are giving up on finding work.
 
A2 Milk’s (ASX: A2M) recovery continued jumping 4.3% as signs that the Daigou channel is beginning to improve buoyed sentiment.
 
Shares in diversified miner and ex-BHP unit (ASX: S32) jumped close to 5% after announcing the purchase of a 45% share in Sierra Gorda, a copper mine in Chile for US$1.55 billion; this markets another miner seeking to position itself for a battery boom.
 
Popular day trading stock Redbubble (ASX: RBL) slumped another 12% after reporting a 34% fall in gross profit in the September quarter.
 
As highlighted previously the company benefitted from a massive spike in demand for masks during the pandemic, a trend that was clearly ‘transitory’ and not justifying the high multiple.
 
Bank earnings boost market, Wells Fargo struggles, Dow gains 500 points
 
Once again earnings are driving global equity markets, which is a relief after months of geopolitical and political sentiment changes.

The Dow Jones added 1.6%, with the S&P 500 and Nasdaq outperforming jumping 1.7% after a series of strong investment banking results.
 
Morgan Stanley (NYSE: MS) jumped over 2% after smashing expectations for investment banking income, which was 68% higher, and seeing growing asset management flows from wealth private clients.
 
Revenue fell 1% but the acquisitions of Eaton Vance and e-Trade both contributed strongly.
 
The more traditional bank in Wells Fargo (NYSE: WFC) fell in a bad sign for Australia big four, as net interest weakened due to lower loan balances likely a result of higher savings levels.
 
Loan growth also slowed despite the booming property market in what may be a precursor for Australia’s January reporting season.
 
Shares in TSMC were slightly higher after announcing their intention to build a fabrication facility in Japan in a step to reduce future chip shortage.

The Inside Adviser


  • Related
    AI boom supports ASX, Block Payments profit jumps, Next DC hits all-time high

    The Australian sharemarket posted a positive finish to the week, gaining 0.4 per cent, but with the S&P/ASX200 still managing to lose 0.2 per cent across the five days. The technology sector was buoyed by NVIDIA’s massive result overnight, with data centre operator Next DC (ASX:NXT) adding 1.9 per cent and hitting another all-time high…

    Drew Meredith | 26th Feb 2024 | More
    ASX weakness on earnings, Woolies CEO to step down, CSR in European takeover bid

    Both Australian benchmarks fell 0.7 per cent on Wednesday, as weakness in the consumer staples sector, which fell 4.3 per cent, offset gains in technology, which added 2.2 per cent. Woolworths (ASX:WOW) fell 6.6 per cent after the company announced the departure of long time CEO Brad Banducci after a TV outburst, with the company…

    Drew Meredith | 22nd Feb 2024 | More
    ASX retreats amid CSL outlook gloom and US inflation data jitters

    The ASX extended its decline today, succumbing to a second consecutive session of losses. Investor sentiment was dampened by a weaker-than-anticipated outlook from biotech heavyweight CSL Limited and heightened anticipation surrounding key US inflation data. The benchmark S&P/ASX 200 closed down -0.2 per cent, with only four of the eleven industry sectors registering gains. The…

    Drew Meredith | 14th Feb 2024 | More
    Popular
  • Popular posts: