ASX nears fourteen-year record, confidence slipping, OZ Minerals, BlueScope smash expectations
It was all about the mining sector on Tuesday, with the diggers and dealers finishing 1.6% higher and pushing the S&P/ASX 200 (ASX: XJO) up another 0.5%.
Across the board, it was an even split between those sectors that gained and detracted with energy also rallying but IT dropping another 1%.
The market is closing in on a 10th consecutive positive month, which would be a 14-year record.
However, lockdowns are clearly wearing on small businesses and the economy with consumer confidence hitting its lowest level since before the vaccine, down 3.5% in June. That said, Victoria’s positive news may see a slight recovery.
OZ Minerals smashes expectations
Copper and gold miner OZ Minerals Limited (ASX: OZL) was the highlight on Tuesday, jumping 6.5% as the group continues to benefit from massive supply for copper coming from the renewable energy and battery sector.
Management announced a 22% lift in copper production which contributed to a 70% increase in revenue to $986 million.
The comapny cited the devastating floods in Henan province in China as a recent driver of the coal price, with the region an important global producer.
A2Milk continues to fall
Shares in A2 Milk Company Ltd (ASX: A2M) continued their difficult start to the financial year, falling 6.3% likely attracting some selling pressure as the Chinese Government appears set to crack down on a number of sectors operating in the country.
Temple & Webster overcomes supply
Online furniture retailer Temple & Webster Group Ltd (ASX: TPW) jumped 7.4% after reporting its FY21 results, delivering an 85% increase in revenue to over $326 million on the back of a 62% increase in active customers.
The group now has 778k active customers, for comparison electronics retailer Kogan.com Ltd (ASX: KGN) sits at about 3 million.
Management also flagged a strong start to July with revenue up 39% compared to 2020.
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BlueScope flags higher profits
BlueScope Steel Limited (ASX: BSL) has overcome pollution concerns to increase its previous guidance, now expecting $1.72 billion in earnings for the financial year, after the second half beat its original forecast by over 10%.
The result was driven by strong demand for steel products in the US and Australia and the persistence of recent higher prices amid the global shortage. The BlueScope share price jumped 6.3% on the news.
ASX 200 today
Looking ahead, the ASX 200 is expected to open lower on Wednesday, following a negative lead from US markets overnight.
