The S&P/ASX 200 lost 1% in morning trading but recovered slightly into midday to be down 0.7% at 7,472.8 after hitting a two-day low of 7,440.1.
The market looks to be forming a base near the 50-day moving average, now at 7,431, however, we could see the record high of 7,632.8 tested this week if the RBA increases quantitative easing on COVID lockdowns.
It may also be buoyed by US share market rises following expectations that the Fed will delay tapering.
Cyclicals and value have underperformed this morning.
Fortescue Metals Group (ASX:FMG) Limited was down 9.3% ex-dividend, Oil Search Ltd was down 3.4% as WTI crude fell 1%, and CBA and Westpac were down 0.9%.
Macquarie upgraded Dexus Property Group to Outperform and raised its target price 5% to $11.67.
Oil Search and Santos Ltd (ASX:STO) agreed to extend the exclusive due diligence period for a further one week to September 13.
On the small cap front
Alicanto Minerals Ltd (ASX:AQI) is up 4.17% after it made its next step towards establishing a JORC resource at the Sala Silver-Lead-Zinc Project in Sweden by kicking off an extensive drilling program.
Pantoro Ltd (ASX:PNR) is up 2.5% after announcing it is set to begin a 2,500-metre drill program to follow up additional PGE targets identified along strike and to the west of the Edison prospect.
Shree Metals Ltd is up 8.33% today having passed another milestone on the path towards recommencing the Nelson Bay River Iron Project.
Antipa Minerals Ltd (ASX:AZY) is up 14.89% after recording further strong gold and copper hits during its 2021 drill program.
Other notable performers:
- ALY is up 7.14%
- BEM is up 3.57%
- CXU is up 18.92%
- CRL is up 5.26%
- CXO is up 7.97%
- ELT is up 9.52%
- ERM is up 5.88%
- FEL is up 7.46%
- GEV is up 7.58%
- GMR is up 14.29%
- HRZ is up 19.05%
- INR is up 7.92%
- KIN is up 4.17%
- NVA is up 11.54%
- OKU is up 8.33%
- PAM is up 31.68%
- SVL is up 5%
- TEM is up 20%
- TMR is up 6.82%
- TYX is up 10%
- VAL is up 20%
- VMS is up 6.41%
- VRC is up 5.41%