The S&P/ASX 200 (ASX: XJO) finished what has been a difficult month on an extremely strong note, closing 1.9% higher. This was the largest single-day gain since November 2020, right after the vaccine was approved.
A number of factors likely coincided on Thursday, with 30 September closing out the quarter in which many professional investors must report, whilst the recent run in the bond yield slowed.
Six of the 11 market sectors moved over 2% higher led by consumer staples (up 2.7%) and materials (up 2.4%) with the latter rallying on the back of a 10% jump in the iron ore price in Singapore.
Despite the rally, the market finished down 2.7% in September, ending an 11-month winning streak, the longest in 78 years according to CommSec.
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Orica Ltd (ASX: ORI) was a standout, with shares rebounding 14.5% following news of its write-down on Wednesday, with brokers upgrading the stock on the back of an expected surge in mining exploration.
Fortescue Metals Group Limited (ASX: FMG) added 1% despite confirming a death on one of its Australia mining sites.
Meanwhile, Pinnacle Investment Management Group Ltd (ASX: PNI) had another difficult day with the fund manager falling 3.5%.
Zip inks Microsoft deal
Shares in Zip Co Ltd (ASX: Z1P) added 1.3% after announcing it had inked a deal with Microsoft (NASDAQ: MSFT). Under the deal, the group will be integrated into Microsoft’s Edge store for businesses and consumers, and could be launched as early as November this year.
The group also signed a deal with Adyen, expanding its merchant base into the Dutch payment company’s Australian network that includes the Chemist Warehouse chain. There are rumours that the underbidder for Afterpay Ltd (ASX: APT) may be lurking.
Bunnings’ Beaumont Tiles deal approved
Wesfarmers Ltd’s (ASX: WES) plans to acquire Beaumont Tiles through its Bunnings business have been waved through by the regulator.
The ACCC noted that Bunnings of itself is not a major player and hence it will not reduce competition in the sector. Wesfarmers shares finished 0.8% higher.
News Corp’s pivot to streaming paying off
News Corporation’s (ASX: NWS) hidden gem in Foxtel highlighted its incredible turnaround in a strategy day as the group gears up for an IPO in 2022.
After struggling for growth in recent years, the group’s decision to pivot to streaming via the likes of Kayo and Binge have paid off with management targeting 5 million subscribers and $3 billion in revenue within three years.
ASX 200 today
The ASX 200 is set to hand back some of yesterday’s gains this morning after all three US benchmarks finished lower overnight. The S&P 500 fell 1.2% while the Dow Jones tumbled 1.6%. To find out more, check out my US stock market report.