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ASX 200 morning report – Z1P, SYD & ASX gold miners in focus

The S&P/ASX 200 (ASX: XJO) managed a small gain on Thursday, finishing 0.1% higher despite seven out of the 11 sectors finishing underwater.

The highlight of the session was the materials sector, which gained 3.1% behind a massive surge in ASX gold miners.

The biggest detractor was the communications sector with the likes of SEEK Limited (ASX: SEK) and TPG Telecom Ltd (ASX: TPG) falling by more than 2%.

ASX gold miners surge

ASX gold miners rallied after US bond markets appear to be pricing in an unprecedented 50 basis point rate hike in March, despite the Fed making no such suggestion.

Northern Star Resources Ltd (ASX: NST) gained over 11% after reporting $950 million in quarterly sales to finish the year, and confirming it would meet production guidance as expected.

Evolution Mining Ltd (ASX: EVN) also benefitted, jumping 8.5%.

Sydney Airport’s traffic update

The ASX travel sector took another hit after Sydney Airport Holdings Pty Ltd (ASX: SYD) highlighted the damage of the Omicron outbreak, with December foot traffic down 69% on 2019 levels.

In January, it is still down 85%, which pressured the likes of Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB), down around 3% each.

Australian unemployment dips

All eyes will be on the Reserve Bank next week after unemployment fell another 0.4% to 4.6% in December.

That said, this came before the massive furloughs impacted the economy in January. Hours worked increased just 1% despite the jump.

Iron ore price gains, Santos & Woodside report

BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) both rallied, adding 4.7% and 3.3%, after the iron ore price once again exceeded US$130 per tonne.

On the energy side, Santos Ltd (ASX: STO) delivered record annual production and sales revenue in 2021, reporting 92.1 million barrels. This saw sales revenue gain 34% as a combination of higher prices and more exports went straight to the bottom line.

It was a similar story at Woodside Petroleum Limited (ASX: WPL) where revenue hit a new record of $2.9 billion, an 86% improvement for the quarter, driven by a 22% increase in volumes.

Zip’s record, Afterpay merger complete

The records continued at BNPL player Zip Co Ltd (ASX: Z1P), which reported $167 million in revenue and a record $2.6 billion in transactions for the quarter, up 53% on the prior year.

Zip shares fell regardless, down 1.4%, whilst Afterpay Ltd’s (ASX: APT) merger with Square (NYSE: SQ) is now complete, relisting under the code Block (ASX: SQ2).

ASX 200 today

Looking ahead, the ASX 200 is set to take a backwards step at the open this morning.

This comes following a negative lead from US stock markets, with all three benchmarks falling by around 1% overnight. To find out more, check out my US stock market report.

The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

In this free report, we outline the key principles that determine all of the portfolio construction and investment decisions of Wattle Partners. Collated over decades, this paper should be seen as a work-in-progress, constantly under review in light of the ever-evolving nature of markets. 

You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

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Disclosure: At the time of publishing, Drew owns shares in Zip.

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Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

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