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HomeBusinessEnergy rallies on optimism surrounding Chinas COVID-Zero policy: ASX closes 0.27% lower

Energy rallies on optimism surrounding Chinas COVID-Zero policy: ASX closes 0.27% lower

Energy, Material and Real Estate were the only sectors in the green in today’s day of trading.

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Energy was the best performer out of the bunch, fuelled on the hopes that a change of policies in China will fuel a demand for products such as iron ore and steel.

As such, Rio Tinto (ASX:RIO), BHP Group (ASX:BHP) and Fortescue Metals (ASX:FMG) rallied by 1.55 per cent, 1.16 per cent and 2.32 per cent respectively.

Overall, the markets have remained relatively flat today. They have balanced the geopolitical news that Russia may have fired a missile that has hit Poland today, although there is no concrete proof that Russia is at fault, and the domestic news surrounding Australia’s strong wages data, suggesting a smaller rate hike next month.

Overall, at the closing bell, the S&P/ASX 200 was 0.27 per cent or 19.40 points lower at 7122.20.

Futures

The Dow Jones futures are pointing to a fall of 68 points.
The S&P 500 futures are pointing to a fall of 11.50 points.
The Nasdaq futures are pointing to a fall of 44.25 points.
The SPI futures are pointing to a fall of 37 points when the market next opens.

Best and worst performers

The best-performing sector was Energy, up 1.18 per cent. The worst-performing sector was Utilities, down 1.47 per cent.

The best-performing stock in the S&P/ASX 200 was Nufarm (ASX:NUF), closing 8.86 per cent higher at $5.90. It was followed by shares in Sandfire Resources (ASX:SFR) and Whitehaven Coal (ASX:WHC).

The worst-performing stock in the S&P/ASX 200 was Imugene (ASX:IMU), closing 9.52 per cent lower at $0.19. It was followed by shares in De Grey Mining (ASX:DEG) and St Barbara (ASX:SBM).

Asian news

Losses have picked up in China in Hang Seng today, leading the mainland markets lower at near market close.

Overall, so far, Japan’s Nikkei has gained 0.07 per cent, Hong Kong’s Hang Seng has lost 1.41 per cent and China’s Shanghai Composite has lost 0.33 per cent.

Company news

Bass Oil (ASX:BAS) has confirmed that it has identified a significant gas resource in Cooper Basin in South Australia. The gas resource has been identified following an independent geological assessment by Fluid Energy Consultants, representing a new notable gas play in the region and potential new material source of gas for the domestic market. In response, Bass Oil Managing Director Mr Tino Guglielmo said: “A new gas resource of this kind is able to be commercialised efficiently due to the mature infrastructure of the Cooper Basin. Whilst we will progress this opportunity with vigour, we are also conscious of maximising the benefit to our shareholders.” Shares have closed 67.57 per cent higher at $0.062.

Stealth Global Holdings (ASX:SGI), a leading industrial distribution group, has today announced its sales results for the first four months of the fiscal year 2023 trading period. Highlights includedd: the company increased its revenue by 22 per cent to $36 million; and the firm delivered double-digit sales growth in all customer segments. Shares have closed flat at $0.13.

Archer Materials (ASX:AXE) informed shareholders that the company has implemented an early-stage prototype of an integrated biochip platform with automated liquid sample handling and readout. The work is a major milestone towards Archer’s biochip technology commercialisation. Commenting on Archer’s biochip development progress, CEO Dr Mohammad Choucair said: “Archer will focus on building advanced and sophisticated versions of this system which could be used in commercial or applied research settings.” Shares have closed 4.55 per cent higher at $0.69.

Commodities and the dollar

Gold is trading at US$1774.07 an ounce.
Iron ore is 0.4 per cent higher at US$95.70 a tonne.
Iron ore futures are pointing to a rise of 2.43 per cent.
Light crude is trading $0.57 lower at US$85.68 a barrel.
One Australian dollar is buying 67.54 US cents.





Peter Milios


Peter Milios is a recent graduate from the University of Technology – majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.


Image & Story Credit: finnewsnetwork.com.au

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