The S&P/ASX 200 (ASX: XJO) hit a four-day high, finishing 0.6% to the positive on Tuesday; yes, a four-day high, showing the short-term focus of the market at the moment.
The energy and materials sectors were the biggest contributors, jumping by 1.6% each.
For energy, it was the case of oil prices hitting another medium-term high overnight, sending the likes of Woodside Petroleum Limited (ASX: WPL) 2.1% higher.
This despite the company effectively writing off its large investment in the Kitimat JV in Canada, costing US$60 million just to exit the asset.
Gold shining again
Gold bullion has been the story of the week, moving closer to US$1,900 per ounce as both inflation concerns and volatility increase. Evolution Mining Ltd (ASX: EVN) shares finished 4.9% higher.
As has been proven time and again in the commodities sector, a rising price does guarantee strong returns.
But this wasn’t enough to save fellow ASX miner Santa Barbara Ltd (ASX: SBM), which fell 9.0% after downgrading production guidance and flagging higher costs per ounce than expected.
Growth bubble stalling
2020s popular tech names, including Redbubble Ltd (ASX: RBL), down 4.2%, and Kogan.com Limited (ASX: KGN), continue to struggle keeping up with growth expectations.
James Hardie set to resume dividends
Building products supplier James Hardie Industries Plc (ASX: JHX) fell 4.5% after warning that inflation pressures are beginning to build in its supply chain.
As highlighted in this column, these are self-inflicted by a business sector that cut orders and inventory during the pandemic and is now seeking to ramp up quicker than what is possible.
The company cited cost pressures in its pulp, pallet and freight costs which are expected to be a US$150 million headwind to profit. It did report a 9% increase in profit for the half, to US$262.8 million on the back of a 12% increase in sales to US$2.9 billion.
In a positive move, James Hardie’s dividends are set to resume in November after being on hold since the pandemic.
Nuix says sorry
Improvement is being made at what could be the worst IPO in recent memory, Nuix Ltd (ASX: NXL), which jumped 11.5% on Tuesday.
Talking to investors, both the Chair and CEO said sorry, taking responsibility for the fact that the company may not have been prepared for ASX-listed life.
Management committed to improving governance and transparency in their pursuit of a share price recovery.
ASX 200 today
Looking ahead, the ASX 200 is expected to open lower on Wednesday following a weak lead from US markets. For all the latest, check out Rask Media’s US stock market report.
