It was another green day on the market with the S&P/ASX 200 (ASX: XJO) adding 0.5% on the back of the materials sector, with the gold price jumping significantly.
Silver Lake Resources Limited (ASX: SLR) and Northern Star Resources Ltd (ASX: NST) were among the biggest beneficiaries, adding 7.9% and 4.0%, respectively.
The trigger appears to have been a weaker AUD after the RBA kept rates on hold at 0.1% once again but flagged hope that the unemployment rate will drop to 4.5% by the end of next year.
The governor noted the growing heat in the property market, with the ABS reporting that new mortgages hit a record $30.2 billion in March as investors added 12.7%, the fastest pace since 2003.
SEEK upgrades guidance
SEEK Limited (ASX: SEK) appears to be benefitting from the economic recovery, moving 1.9% higher after upgrading guidance as operating conditions in both Australia and Asia continue to improve.
It now expects $1.59 billion in revenue and a net profit of $140 million, an improvement on expectations.
Investors cheered the announcement that a portion of the $697 million to be received from the sell-down of SEEK’s investment in Zhaopin would be returned in the form of a dividend.
Retail recovery on track
Vicinity Centres (ASX: VCX) fell 1.0% despite confirming that both centre visitation and retail sales were improving.
Supermarkets grew 1.5% on pre-COVID levels whilst discount department centres remain the focus of more conservative consumers, with sales in the sector adding 11.7% as traditional department store sales collapsed by 22.4%.
Vicinity said that strong spend per visit in conjunction with increasing centre visitation may be a positive lead indicator for continued recovery.
Travellers taking flight
Struggling travel agency Flight Centre Travel Group Ltd (ASX: FLT) has confirmed that its recovery is still on track, reporting record sales in March in the COVID-impacted environment.
Sales turnover for March was $100 million, 32.7% better than February with further growth expected in April.
That said, second-half losses are expected to be broadly in line with the first half as revenue gains are offset by JobKeeper losses. Flight Centre shares fell 4.6% on the news.
Nine Entertainment benefiting from value rotation
The struggling media sector is benefitting from the value rotation, with Nine Entertainment Co Holdings Ltd (ASX: NEC) reporting that revenue growth in its broadcasting business had improved 6% and closer to 50% for the June quarter just one month in.
Costs have fallen 3% with a number of sports rights falling away, the NEC share price jumped 2.5% on the news.
Niche retail showing no signs of slowing
Niche retailer Super Retail Group Ltd (ASX: SUL) delivered another strong upgrade, sales growth up 28% across the group for the first 44 weeks of the trading year; this is 22% better than 2019 figures.
Boating Camping Fishing is benefitting from the travel-at-home trend, sales jumping 57% on 2020 levels and 49% on 2019. Rebel Sports saw 20% growth and Super Cheap Auto 21%, which sent the Super Retail share price 0.7% higher.
ASX 200 today
The ASX 200 is poised to fall when the market opens on Wednesday following a weak lead from US markets overnight, which saw tech stocks fall particularly hard. For all the latest, check out Rask Media’s US stock market report.
