As expected, the market is higher so far today.
The S&P/ASX200 gained 25.30 points or 0.34% to 7,418.00, crossing above its 125-day moving average.
Over the last five days, the index is virtually unchanged, but is currently 2.81% below its 52-week high.
The top-performing stocks in this index at the time of writing are NIB Holdings Limited (ASX:NHF) up 4.89% on a strong 1Q trading update and Nufarm Limited up 3.96%.
“We continue to grow with increased profitability, we are well capitalised and there is no shortage of opportunity ahead,” said NIB chairman David Gordan.
Overall, it was the IT, Communications, Health Care, Financials and Consumer Staples sectors that outperformed in morning trading.
The retail sector is another to watch as retail sales fell less than expected in Q3, down 4.4% in the September quarter ahead of analysts’ 5.5% expectations.
With more money in people’s pockets, the December quarter could be a boon period for retailers.
Trading has been light, at about 19% below average, which could be due to the running of horses on Oaks Day today.
Other gainers today include CBA up 0.9%, Macquarie up 1.3%, Afterpay up 2%, ANZ 0.8% higher and Sonic Healthcare which jumped 2.6
CSR jumped 3.8% after 1H profit and positive guidance for the second half.
Domino’s Pizza Enterprises Ltd proved to be the main drain, down 12% after it released a disappointing trading update. Note, its shares were down 19% at the open and have regained their 200-day average.
Woodside was down 2.8% and Santos lost 2.7% after crude oil surged down overnight.
The energy sector was down 2% overnight with Beach Energy also falling, it by 3.7%, Worley fell 3.4% and Oil Search 2.8%.
Job ads up 10%
As proof of a recovering Australian economy, job ads are now up 10%.
The SEEK job ad index compiled by NAB has reported a wave of post-lockdown hiring as we enter into the summer months.
Growth in NSW is over 20%, while Victoria recorded 16.3%.
“New job ads rose most strongly in the jurisdictions coming out of lockdown,” economists from NAB said.
“With such strong labour demand, the trend decline in unemployment in place prior to lockdowns should re-establish itself quickly.”
What’s up with Domino’s?
Domino’s Pizza was down 17.1% in morning trading.
While it has recovered some losses, it seems Japan aren’t too taken by its pizzas now they are out of lockdown
Stumbling sales from its Japan business was just one reason for the nosedive.
A warning about higher food costs has also spooked investors.
The morning decline had put the company on trajectory to record its worst day since August 2017. It would also have been one of its biggest declines since its IPO.
Macquarie analysts maintain a neutral position on the stock, pointing to energy price inflation, labour shortages and rising food costs for its decline.
“While Domino’s Pizza is targeting FY22 to be the largest expansion of its store footprint, we see multiple headwinds in the near-term,” Macquarie analysts said.
On the small cap front
Kinetiko Energy Ltd (ASX:KKO) is up 4.40%. KKO has kicked off a three-well drilling program on the Korhaan Project in energy-hungry South Africa with Korhaan-4 well spudded.
European Lithium Ltd (ASX:EUR) is up 3.70% with the potential to acquire two Ukrainian lithium assets through its deal to buy Petro Consulting LLC from Millstone and Company Global DW LLC.
Mako Gold Ltd (ASX:MKG) is up 3.23% after resuming its 35,000-metre reverse circulation (RC) and diamond drilling program at Tchaga Prospect of its flagship Napié Project in Côte d’Ivoire following the end of the wet season.