ASX Ends Week Green: Non-Essential Retail Rises As ABS Figures Show Record Peak Online
The “remarkably resilient” ASX ended the week in the green as non-core retail inventories rose as the numbers showed a national record for online sales.
The Australian stock market ended a two-day losing streak to end the week in positive territory, with miners and non-core retail among the gains.
The benchmark S & P / ASX200 closed up 0.5% to 7,522.9, while the All Ordinaries index gained 0.55% to 7,826.7.
“Considering we’re coming off 11 months of gains… the market has been remarkably resilient under the circumstances,” said Steven Daghlian, Market Analyst at CommSec.
Most sectors have performed well, he said, but there has been a dearth of business news as the official earnings season ended this week.
In economic news, however, figures from the Australian Bureau of Statistics showed retail trade fell 2.7% in July from the previous month.
But that was due to sharp declines in locked down NSW, down 8.9% mo, and South Australia, down 3.3%.
All other states and territories had higher retail trade, led by Tasmania, up 2.7%.
Food retailing increased 2.3 percent, while sales of clothing, footwear and personal accessories fell 15.4 percent.
Online sales soared to $ 3.7 billion (the highest level in data history), up 19.3% from June.
Australian Retailers Association chief executive Paul Zahra said the unsurprising spike in e-commerce demand was adding stress to supply chains and warned shoppers to prepare ahead of the holiday season. year.
“Allow plenty of time for your items to be delivered and it’s also an important reminder not to leave your Christmas shopping until the last minute,” Zahra said.
Coles fell 0.67% to $ 17.74, while its biggest rival Woolworths added 0.62% to $ 40.72.
Among consumer discretionary stocks, Dusk jumped 7.17% to $ 3.29, Temple and Webster were up 3.28% to $ 13.86, Super Retail gained 1.8% to $ 12.42 , Nick Scali appreciated 1.22% to $ 12.45 and Kogan rose 1.29% to $ 11.01 but Harvey Norman was down 1.5 percent to $ 5.22.
Mosaic Brands, which owns fashion chains such as Noni B and Rockmans, said it was not yet ready to come out of its trading halt and announce a fundraising proposal.
BHP rose 0.98% to $ 42.35, Rio Tinto jumped 2.5% to $ 111.37 and Fortescue added 0.68% to $ 20.85.
“Impressive improvements there, as the price of iron ore fell 2.7% yesterday to US $ 139 / t. This means that iron ore prices have fallen 11% this week, ”Daghlian said.
OMG chief executive Ivan Churilov said Alumina has been a star since posting its half-yearly net profit last week, rallying 18% and reaching all-time highs since its sale in February 2020.
“There is clearly still an appetite for certain materials and stocks in the mining sector, even though key raw materials such as iron ore have clearly fallen into disuse,” he said.
Alumina’s share gained 6.68 percent to $ 1.99.
Orocobre was a strong performer, jumping 7% to $ 9.79, as did fellow lithium miner Pilbara Minerals, up 2.26% to $ 2.26, while Lynas Rare Earths gained 3.37% at $ 7.06.
Energy stocks rallied after the price of oil rose about 2% to just under $ 70 a barrel, Daghlian said.
Woodside rose 0.76% to $ 19.90, Santos added 0.64% to $ 6.25 and Origin gained 0.9% to $ 4.46.
ANZ fell four cents to $ 27.87, Commonwealth Bank improved 0.46% to $ 101.84, National Australia Bank found 0.74% to $ 28.70 and Westpac fell slightly one cent to $ 26.02.
The buy now-pay-later provider Afterpay fell 2.77% to $ 130.71.
Churilov said biotech company Mesoblast suffered “a week to forget” after the FDA raised questions about its flagship drug candidate, used to treat acute respiratory distress syndrome in adults.
“This resulted in a 20% drop over two days, which left investors in shock and in too familiar territory,” he said.
“The stock has somehow managed to rally, rising 5.8% today (to $ 1.71), but it’s down 70% in two years, problem after problem.
“Investors have been burned by them one too many times and have lost confidence, at least in the short term.”
AMA Group responded to suggestions from the media that it was looking for financing options, insisting that its liquidity remained strong as it undertook a review of the capital structure, but conceding that the decline in accident repairs car related to Covid had an impact.
“It’s no surprise that massive repairs during the pandemic may not have generated a lot of business as there are fewer cars on the road,” Daghlian said.
Shares of AMA fell 5.62 percent to 42 cents.
The Australian dollar was buying 74.22 US cents, 53.66 UK pence and 62.48 euro cents in afternoon trading.