Australian shares jumped by 0.2% to 7,605.3 directly after the market opened, closing in on its record intraday high of 7,632.8. The early trading session saw it carry its momentum through from the previous close, where the ASX closed at a four-month high on the back of lithium stocks.
However, by midday today it had pared back.
Early winners were the banks: Macquarie Group Ltd extended its rally by 2.5% to $216.63, the Commonwealth Bank of Australia (ASX:CBA) gained 0.7% to $103.26 before paring back to a 0.39% gain, National Australia Bank was 0.7% higher to $29.60, Westpac Banking Corp was up 0.7% to $21.82 and Australia and New Zealand Banking Group (ASX:ANZ) was 0.1% higher to $28.03 but is now down 0.11% to $27.97.
Platinum Asset Management Ltd was the biggest gainer at 3.1% to $2.85, but is now down to a gain of 1.81%, while Santos Ltd (ASX:STO) climbed 1.59% to $6.72 and Magellan Financial Group Ltd (ASX:MFG) was 0.9% higher to $21.59 before falling to a positive of 0.23% to $21.45.
Morningstar continues to back Platinum, saying there is value in the stock.
“Shares are at circa 30% discount to our revised fair value estimate and markets are ignoring Platinum’s good traits,” said equity analyst Shaun Ler. “Consensus is pricing in index-like returns, but we think the odds of outperformance are on Platinum’s side.”
Morningstar’s forecast sees Platinum delivering returns averaging 11.5% annually over the next five years. While this is slightly below its five-year average of 13% per year, it is solid.
“Platinum is upping its game on product enhancement, distribution and marketing, all of which will help lessen net outflows. Key person risk is well managed,” Ler added.
Buy now, pay later stocks suffered with Afterpay Ltd (ASX:APT) down 3.41% to $81 after falling 4.2% to $80.35 and Zip Ltd Co down 3.93% to $US4.16.
By midday, the S&P/ASX200 was lower, dropping 19.20 points or 0.25% to 7,570.60 after setting a new 50-day high. Over the last five days, the index has gained 0.81% and is currently 0.81% off of its 52-week high.
The bottom-performing stocks in this index are currently Imugene Ltd (ASX:IMU, OTC:IUGNF) down 4.71% and Clinuvel Pharmaceuticals (ASX:CUV) down 4.70%.
Dow hits record high
It was a different story at the close of trade on Wall St.
The Dow has started new year trading with back-to-back record highs.
The Dow Jones Industrial Average DJIA rose 214.59 points, or 0.6%, to close at an all-time high of 36,799.65 after it established an intraday record at 36,934.84.
It wasn’t such good news for the other major indices.
The S&P 500 SPX slipped 3.02 points, or almost 0.1%, to end at 4,793.54 after touching an intraday all-time high at 4,818.62, while the Nasdaq Composite COMP sank 210.08 points, or 1.3%, to finish at 15,622.72, after trading near session lows at 15,512.41.
Dragging the markets down were tech stocks and selling pressure as Treasury yields climbed.
“This isn’t a calm day where everything is kind of moving together,” chief market strategist for LPL Financial Ryan Detrick told MarketWatch.
“Tech is really taking it on the chin due to the higher yields,” he said, "whereas financials and banks generally are performing very, very well."
Oil prices rise
If you saw your local petrol station raise its prices, it is due to oil prices rallying by more than 1% overnight because OPEC (Organisation of the Petroleum Exporting Countries) and friends (Russia), pushed forward plans to increase production by 400,000 barrels per day in February.
“The group [cited] weaker global supply in the first quarter, and a pick-up in demand further into the future, as justification for sticking to their plans,” noted IG market analyst, Kyle Rodda.
Brent crude added 1.5% to $US80.17 a barrel, while West Texas Intermediate climbed a similar amount to $US77.19 a barrel.
On the small cap front
RTG Mining Inc (ASX:RTG, TSX:RTG) is 8.33% higher. RTG has welcomed the lifting by the Philippines Government of a four-year-old ban on the open-pit method of mining for copper, gold, silver and complex ores in the country.
BlackEarth Minerals NL (ASX:BEM) is 7.69% higher. BEM continues to make headway towards a definitive feasibility study (DFS) for flagship asset, the Maniry Graphite Project in Southern Madagascar.
Meeka Gold Ltd (ASX:MEK) is 5.00% higher. MEK believes it is now sitting on a large mineralised system that is yet to show its true potential.
Noxopharm Ltd (ASX:NOX) is 4.88% higher. NOX has appointed its chief medical officer Dr Gisela Mautner as its new chief executive officer (CEO).
Australian Potash Ltd (ASX:APC) is 3.03% higher. APC has received a strong endorsement of its approach to Environmental, Social and Corporate Governance (ESG) principles with Perth-based ESG natural resources investment fund Eden Global increasing its holding.