The Mid Market Pulse || ASX Continues Lackluster Trade; Costa Shares Crash 22%

The Mid Market Pulse || ASX Continues Lackluster Trade; Costa Shares Crash 22%

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Hi welcome back, I am Holly and you are watching kalkine tv live from Sydney. This is The Mid Market Pulse. Lets get started with the mid market commentary for today and see how ASX 200 traded by lunchtime. The Australian share market continued to trade flat in lackluster  trade on Thursday, following a muted session on Wall Street in overnight trade, while fresh coronavirus curbs in Victoria also weighed on investor sentiment. Victoria will enter

a seven-day lockdown from 11:59pm tonight after 12 new cases wer e detected yesterday.  The ASX is trading higher by just 2.70 points at 7095.20 by the afternoon, after a muted opening. The index has gained 1.08% over the last five days and is currently 1.08% off from its 52-week high. 

On the sectoral front, indices are mixed today with 4 sectors trading in positive terrain. Materials is the best performing sector with 0.60% gain, followed by Information Technology, Energy, Consumer Discretionary.  On the flip side, Healthcare, Consumer Staples, A-REIT, Telecommunications Services, Utilities, Financials, were among worst performing sectors on the ASX.  The technology shares are broadly weak, with Afterpay Limited (ASX:APT), Nearmap, and Zip Co Limited (ASX:Z1P) trading lower. Xero Limited (ASX:XRO) trades in green with marginal gains.  In energy space, index heavyweights Boss Energy Limited (ASX:BOE), Carnarvon Petroleum Limited (ASX:CVN) and Woodside Petroleum Limited (ASX:WPL) are trading higher, owing to higher crude price. On Wednesday, crude oil prices traded slightly higher as a drop in US crude

stockpiles reinforced expectations of improving fuel demand ahead of the peak summer driving season, offsetting worries that a possible return of Iran would create an excess supply.  Australian gold miners such as St Barbara Limited (ASX:SBM), Evolution Mining Limited (ASX:EVN) and De Grey Mining Limited (ASX:DEG) are trading in red, tracking retreat in yellow metal price. Spot gold is down by 0.16% at US$1,895 an ounce. The US gold futures ended 0.2% up, at US$1,901.20 an ounce.  Travel and leisure shares fall amid fresh lockdown measures across after the detection of new COVID-19 case.  

Miners, on the other hand, gained with sector heavyweights Rio Tinto (ASX:RIO), Fortescue Metals Group Limited (ASX:FMG) and BHP Group Limited (ASX:BHP) rising between 0.5-1.5%.  Moving on Gainers and Losers  BNPL player EML Payments Limited (ASX:EML) is best performer on ASX, rising 4.5% to AU$3.45. AMP Limited (ASX:AMP), Champion Iron Limited (ASX:CIA), Pilbara Minerals Limited (ASX:PLS) and Perpetual Limited (ASX:PPT) are among other top gainer.   Costa Group Holdings Limited (ASX:CGC) was top percentage loser of ASX, falling nearly 23% to AU$3.43 after Australia's largest horticultural company flagged a marginally higher first-half result. 

Some of the worst performing stocks on ASX are  Costa Group Holdings Limited (ASX:CGC), Fisher and Paykel Healthcare Corporation Ltd (ASX:FPH), Ansell Limited (ASX:ANN), Chorus Ltd. (ASX:CNU) and A2 Milk Company Limited (ASX:A2M).  Its Time for short Break. But stay tuned as I’ll be back in a moment. @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ Hi welcome back, I am Holly and you are watching kalkine tv live from Sydney. This is The Mid

Market Pulse. Lets look at the Shares in News  Shares of wealth giant AMP Limited (ASX:AMP) remained in focus today after the Australian Securities and Investment Commission (ASIC) started civil proceedings in the Federal Court against five companies related to wealth manager.  The Australian watchdog alleged that these companies were involved in charging life insurance premiums and advice fees to customers despite being notified of their deaths. Acknowledging the proceedings, the company’s General Counsel, David Cullen, said it had taken these allegations very seriously and had started working with the ASIC with its investigation. He also assured the company’s cooperation in assisting the

ASIC as a part of the legal process. The AMP Limited (ASX:AMP) share price is trading 4.69% up, at AU$1.115 against the previous closing of AU$1.065.  BNPL provider Laybuy Group Holdings (ASX:LBY) has announced its earnings numbers for the full year ended 31 March 2021. The company’s income jumped 138% year-on-year to NZD 32.6 million, while total group market value rose 159%

Y-o-Y, at NZD 589 million. After the announcement, the company’s stock was spotted trading at AU$0.570 per share, up 2.70%.  Real estate advertising firm REA Group Limited (ASX:REA) has confirmed with Mortgage Choice Limited (ASX:MOC) that it has got a written approval from the Foreign Investment Review Board (FIRB) that the Commonwealth has no objections to the proposed acquisition of Mortgage Choice by REA Financial Services Holding Co. Pty Ltd, a wholly-owned subsidiary of REA. Following the announcement, REA Group Limited (ASX:REA) shares traded

at AU$165.09 per share, while Mortgage Choice Limited (ASX:MOC) was at AU$1.940.  Apiam Animal Health Limited (ASX:AHX) has informed exchange that it has made strategic acquisition of three Queensland-based veterinary businesses for a total combined consideration of AU$6.7 million. The acquisitions feature Samford Valley Veterinary Hospital, Clermont Veterinary Surgery and Knox Veterinary Clinic in Dalby. Boosted by the deal, Apiam Animal Health Limited (ASX:AHX) stock rose 1.724% to AU$0.885.  Real-time software firm Vection Technologies Ltd (ASX:VR1) announced that Toshiba Tec Italia SpA has started the commercial distribution of the Company’s Mixed Reality (XR) software portfolio. Following the announcement, Vection Technologies Ltd (ASX:VR1) stock price surged 11.5% to AU$0.68. 

Redfles Holdings Limited (ASX:RDF) announced that the Company’s subsidiary, Redflex Traffic Systems Pty Ltd, has struck a new three-year contract with Transport for NSW (TfNSW) for the operation of mobile roadside speed camera enforcement in various regions of New South Wales, Australia. Redfles Holdings Limited (ASX:RDF) stock of the company was trading 0.26% higher at AU$0.95.  Live Verdure Ltd (ASX:LV1) has announced that “13 Seeds” range of hemp-based gel capsules have been approved by Amazon to be sold via their US-facing marketplace, with sales having recently started. Live Verdure Ltd (ASX:LV1) stock was spotted at AU$0.215. 

Financial research firm Citi has raised expectations for New Hope Corporation Limited’s (ASX:NHC) 2022 earnings after the company reported Q3 production volumes in line with expectations. The brokerage has raised the target price to AU$1.75 from AU$1.55 and upgraded rating to ‘buy’ from ‘neutral’. Reacting to the news, the shares price of New Hope Corporation

Limited’s (ASX:NHC) jumped 6.85% to AU$1.405.   Its Time for short Break. But stay tuned as I’ll be back in a moment with some latest reports on cryptocurrency and trading platform Robinhood. @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ Hi welcome back, I am Holly and you are watching kalkine tv live from Sydney. This is The Mid Market Pulse. Asian Markets Remain Cautious Ahead of US inflation data  Asian stock markets were trading mostly lower on Thursday, undermining firm cues from Wall Street, as investors remained cautious ahead of US inflation data later this week. 

Taiwan’s Taiwan Weighted Index was the worst performer in the region’s major markets, falling over 1%, followed by Japan’s Nikkei 225, which was down 0.8%.   In a similar trend, South Korea’s Kospi dropped by 0.7%, while the Straits Times index in Singapore was down 0.05%. China’s Shanghai Composite was trading flat with negative bias  Meanwhile, New Zealand's benchmark S&P/NZX 50 traded lower by 1.4%.   In the overnight trade, all three major US indices ended in green driven by communication services and consumer discretionary shares. By

the close, the Dow Jones rose 0.03%, to 34,323.05, while the S&P 500 gained 0.19%, to 4,195.98. NASDAQ Composite was up 0.59%, to 13,738.01.  Moving on. China’s Inner Mongolia doubles down on Bitcoin ban, outlines punishments Chinese autonomous region of Inner Mongolia region is planning to further crack down on cryptocurrencies by proposing punishments for companies and individuals involved in digital currency mining. The administrative body of the region -- Inner Mongolia Autonomous Region Development and Reform Commission – has set up a hotline, email, and mail address for the general public to report any suspicious crypto-mining operations. It has also proposed punishments for the entities and individuals

involved in digital currency mining. The move comes after Chinese Vice Premier Liu He has said that it is necessary to “crack down on Bitcoin mining and trading behavior” in a bid to prevent the “transmission of individual risks to the social field.” Those comments were seen as Beijing’s intentions to continue a four-year crackdown on Bitcoin trading and other cryptocurrency-related activities. The move is seen aimed at cutting down on energy consumption. Meanwhile, cities like Tehran have been badly hit with power outages. As a result, Iran has also banned Bitcoin mining. The ban was put to effect immediately and will be in place

until 22 September, the reports said. According to the reports, most of the energy consumption for bitcoin mining is coming through illegal miners, or those without licences. This has prompted a severe crackdown against the cryptocurrencies nationwide. Its Time for short Break. But stay tuned as I’ll be back in a moment. @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ Hi welcome back, I am Holly and you are watching kalkine tv live from Sydney. This is The Mid

Market Pulse. Lets look at some big news from the cryptocurrency space. Elon Musk’s Dogecoin Preference Backed By “Dogs and Memes” Musk’s simplified musing helped Dogecoin’s price rebound after a major sell off over the weekend. The price of Dogecoin now sits at US$0.35 after falling to just below US$0.25.

On 8 May, the meme-coin was valued at just above US$0.72. The enigmatic billionaire, whose recent tweets have sent Bitcoin’s price on a wild rollercoaster ride in recent weeks, has become an avid fan of Dogecoin and is even considered by many of Dogecoin’s fans to be the unofficial CEO of Dogecoin. One tweet this morning from one enthusiastic Dogecoin fan said that Musk seemed to be treating the digital currency as one of his own companies and that with Musk as Dogecoin’s CEO, the coin is in good hands. This prompted Musk to point out that his ability to take any formal action is limited given that Dogecoin has no formal organisational structure. Despite Musk’s disclaimer, the SpaceX founder and would-be space traveller requested developers submit ideas that could improve and upgrade the meme crypto.He also added that Ethereum’s co-founder, Vitalik Buterin, fears Dogecoin. Musk’s

Hefty Influence on Dogecoin Dogecoin is an altcoin that was introduced to the crypto market in 2014. It was started by Billy Marcus and Jackson Palmer as a joke designed to satirise other cryptos. Despite its sardonic roots, Dogecoin has soared this year, offering staggering returns of 14,500 per cent. The meteoric rise has been largely due to tweets from Musk, with the aspiring spaceman going so far as to proclaim himself to be “The Dogefather”. Dogecoin hit a bump in the road earlier this month. However, when Musk called Dogecoin a “hustle” on the popular long-running American comedy series Saturday Night Live.

The wry comment saw an immediate drop of over thirty per cent of Dogecoin’s value. Moving on to the next big news. Robinhood IPO: Five things to know about the fintech start-up before it goes public. The millennial-favoured stock trading app Robinhood, which offers zero-commission trading in stocks and cryptocurrencies, is expected to launch a multibillion-dollar initial public offering (IPO) in the coming months. The fintech start-up has decided to go public eight years after young entrepreneurs, Vladimir Tenev and Baiju Bhatt, started the company with a mission to ‘democratise finance for all’ – inspired by folk hero Robin Hood, who stole from the rich to give to the poor. Founded in 2013, the Menlo Park, California-based firm has disrupted the brokerage industry with its zero-commission business model which forced major brokerages across the world to reduce their fees. Over the years, Robinhood

has emerged as one of Silicon Valley's most valuable private unicorns with a market valuation of around US$11.7 billion. While growing at a fast pace, the fintech company has also faced several controversies in its lifespan. The US consumer protection agencies received around 400 complaints against Robinhood, mostly accusing it of aggressively marketing its app among the new investors without caring about the customers' best interest. Before I share five things to know about Robinhood ahead of Robinhood IPO Its Time for short Break. But stay tuned as I’ll be back in a moment. @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ Hi welcome back, I am Holly and you are watching kalkine tv live from Sydney. This is The Mid Market Pulse.

Here are five things to know about Robinhood ahead of its IPO: The Silicon Valley start-up has recently filed a draft registration statement (S-1) with the Securities and Exchange Commission (SEC) and is expected to soon reveal the details of its highly anticipated IPO. According to a Bloomberg report, Robinhood Markets Inc. had confidentially submitted the paper to regulators in March 2021 and could make its debut in June this year. The online trading app clocked record revenue from customer trades in the first quarter of 2021. Revenue from “payment for order flow”, a system where the brokerage firm receives money for routing orders to market makers, more than tripled to US$331 million, from $91 million a year ago. The company has collected US$221 million from such payments in the fourth quarter of 2020 and a total of about US$687 million last year. The company generates around 50% of its revenue through payment for order flow, while the remaining 50% from interest charged on each user’s cash held in their accounts and Robinhood Gold – the firm’s margin service.

The brokerage not only saw a surge in order flow, but it also reported a strong rise in retail trading activity and customer base, thanks to its zero-commission policy. As many as 9.5 million users traded cryptocurrency on its platform during the March quarter of 2021, an almost six-fold jump from the previous quarter. The trading app added 6 million new

users in the first two months of 2021 as compared to around 2 million users per month before. Overall, the company has around 20 million users. In a bid to support its growing customer base, the fintech company has raised US$3.4 billion through a private placement in February 2021. The company has raised capital in two funding

rounds, led by Ribbit Capital and many other venture capital firms, with the objective to build and enhance the products, providing more people with financial system access. Well, that’s all for now. Keep watching kalkine tv as we bring you latest news and trending market updates live from Sydney.

2021-06-02 05:06

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