ASX snaps three-day losing streak
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The news: The Australian sharemarket snapped its three-day fall after tracking gains on Wall Street that saw buyers returning to mega cap growth stocks.
The numbers: The benchmark ASX 200 rose 0.5% to end at 7,971.1, with nine out of 11 sectors ending in green.
The best performing sector was IT, up 1.62%, followed by healthcare (1.37%). Healthcare stocks Mesoblast (13.85%), Polynovo (7.47%), and Telix Pharmaceuticals (3.26%) all rose. Mesoblast announced the US Food and Drug Administration accepted its licence application resubmission for a paediatric treatment for children who develop a potentially deadly rash after receiving a bone marrow transplant.
PolyNovo today announced a surge in year-on-year sales and revenue partially due to an “enormous” need for its medical devices in conflict zones and developing countries. Meanwhile, Wilsons Advisory reiterated its ‘overweight’ rating on Telix and upgraded its price target.
Insignia Financial, up 7%, extended Monday’s gains that saw the company upgrade its full-year profit guidance but Morgan Stanley analysts were mixed on its results. Zip also extended gains, up 6.2%, after it announced last week that it had completed a $267 million raise to repay its existing debt and to support future growth.
Elsewhere, Spartan Resources shares soared 22.61% after the explorer significantly upgraded the mineral resource estimate for its Dalgaranga Gold Project in Western Australia.
Arafura gained 2.63% after receiving approvals for $1.12 billion in senior debt while Iluka Resources rose 0.65% despite posting a hit to first-half earnings.
Transurban increased 1.25% after announcing that it had partnered with the Queensland government to widen the western section of the Logan Motorway.
The worst performing sector was energy, down 2.03%, followed by materials (-0.45%). Woodside shares fell 3.74% after it reiterated full-year production guidance but recorded lower production output for the June quarter.
DroneShield shares continued to tumble, down 7.74%, despite broker Bell Potter hiking its 12-month price target on the company. However, the analysts downgraded its rating on the stock to ‘hold’ from ‘buy’.
Meanwhile, Lynas shares slipped 0.66% after the rare earths producer reported lower production and sales revenue for the June quarter.
The Australian dollar is lower buying 66.3 US cents.
The context: Wednesday will see Pilbara post its quarterly earnings along with US firms Tesla and Alphabet.
