The ASX shrugged off share market climbed, and commodity prices fell as bargain hunters bought up resource stocks. After tumbling 2.1 percent on Monday – the in seven months – the S&P/ASX200 index firmed 0.35 percent to 7273.8. The All Ordinaries Index lifted 0.33 percent to 7563.1. CommSec analyst Steven Daghlian said the local bourse performed “nowhere near” what futures were suggesting, despite concerns Chinese property giant Evergrande could collapse., and commodity prices fell as bargain hunters pounced on cheaper mining and energy stocks. Despite Wall Street, the Australian
“We had completely shaken off the declines from the US marketin four months, down by about 1.7 percent,” Mr. Daghlian said. Chief executive Ivan Tchourilov said another “bloodbath” had been expected on the local market. Resources stocks were seemingly unaffected by a overnight. Mr. Daghlian said it appeared puzzling and counterintuitive that iron ore miners stood out. “The iron ore price … fell by 6.7 percent in the past day and has fallen to a 16-month low,” he said.
“It’s down 60 percent from the highsin the middle of May. But remember yesterday, we had significant declines for most of the iron ore players, and they’ve also been the hardest hit since the start of this . “Some bargain hunters perhaps jumping in and taking advantage of the recent sell-off.” Rio Tinto improved 0.49 percent to $95.71, BHP added 0.59 percent to $37.75, Fortescue lifted 0.34 percent to $14.75, Mount Gibson Iron rallied 6.17 percent to 43 cents, and Champion Iron gained 4.24 percent to $4.67.
“Remember Champion Iron is still trading 26 percent down from the end of August, with investors looking towards iron ore futures for guidance,” Mr. Tchourilov said. The energy sector strengthened after falling about 3 percent on Monday, with Woodside rising 1.65 percent to $20.92, Oil Search putting on 1.08 percent to $3.76, and its takeover suitor Santos appreciating 1.14 percent to $6.19. “Oilhave been extended in the US. However, concern over the Chinese spike,” Mr. Tchourilov said.
ANZ inched one cent higher to $27.15,declined 0.47 percent to $100.34, National Australia Bank backtracked 0.88 percent to $27.10, and Westpac shed 0.44 percent to $25.19 while Macquarie Group retreated 1 percent to $171.93. AusNet went into a trading halt at $2.36 after receiving improved indicative cash and scrip from gas pipeline business APA Group. The power lines operator engaged with the company once its exclusivity period with a rival suitor and Canadian giant Brookfield concluded.
Brookfield lobbed a sweetened indicative bid of $2.50 per share on Monday and is conducting due diligence on AusNet, which says there is no certainty it will lead to a binding offer. Retailer Kathmandu released its preliminary full-year report, flagging a massive profit performance by Rip Curl and Oboz, driven by more people surfing and hiking. Boss Michael Daly said Rip Curl’s wholesale order books were now significantly above pre-Covid levels, while the forward order book for Oboz was at its ever. But Kathmandu by ongoing lockdowns and travel restrictions, including during the critical winter trading period.
have also driven up freight costs and caused delivery delays. Shares in the group dropped 1.4 percent to $1.41. Coal miner, New Hope advanced 4.37 percent to $2.15 after reporting a return to full-year profitability. Crop protection specialist Nufarm continued to trade strongly, rising 4.23 percent to $4.68. “Nufarm has found its footing after a death cross in early August, and a breakout above the 200 average here could indicate an uptrend for technical traders,” Mr. Tchourilov said. In economic news, the of Australia board released the minutes of its latest meeting, saying economic recovery from the highly infectious Delta variant could be slower than the rebound earlier in the pandemic, given restrictions would likely be lifted gradually.
“The RBA’s updated assessment is now more in-line with the view of Commonwealth Bank group economists, who do notpath until the second half of 2022,” CommSec senior economist Ryan Felsman said. The weekly ANZ-Roy Morgan consumer confidence rating rose by 0.2 percent to a nine-week high of 103.3, compared to a long-run average since 1990 of 112.5. The CBA Household were soft in August but showed some stabilization from recent declines. The Aussie dollar fetched 72.77 US cents, 53.14 British pence, and 61.98 Euro cents in afternoon trade. Published initially as the shakes off Wall Street, commodity price falls as bargain hunters pounce on resource stocks.