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ASX at open: energy and mining stocks carry the market higher

Wed 02 Feb 22, 11:31am (AEST)
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Key Points

  • Energy stocks trend higher ahead of OPEC's output meeting on Wednesday night
  • Iron ore stocks bounce higher as China is on a week-long Lunar New Year holiday

The ASX is up 0.92% as every sector except healthcare, opened higher.

11 ASX Sectors 2022-02-02

11 ASX Sectors at 10:45 am AEDT

This was backed by an encouraging session on Wall Street, where its three major indices rallied for a third straight session. 

US quarterly reporting season is well underway, with 78.5% of S&P 500 companies beating bottom-line expectations, according to FactSet. 

Energy stocks rally ahead of OPEC meeting 

Local energy stocks opened higher, with large cap names including Woodside Petroleum (ASX: WPL) and Santos (ASX: STO) up 2.8% and 2.1% respectively. 

Karoon Energy (ASX: KAR) was also up 2.64%.

Oil prices edged slightly lower ahead of the OPEC+ meeting on output. The group is expected to stick to its existing policies of moderate output increases, even as it faces pressure from top consumers such as the US to pump more oil to relieve surging energy prices. 

Miners bounce back 

BHP (ASX: BHP) and Rio Tinto (ASX: RIO) are bouncing back after falling more than -2.4% on Tuesday. 

Iron ore prices were unchanged overnight at US$141.75 a tonne. 

Pure-play iron ore stocks are leading the pack, including: 

Headline roundup 

  • Mineral Resources (ASX: MIN) announced that the Government of WA has granted a port capacity allocation, subject to relevant approvals. If developed, the company expects to ship at least 20 million tonnes of iron ore per annum from the new facility 

  • Brainchip (ASX: BRN) awarded US patent for “Method and a System for Creating Dynamic Neural Function Libraries”

  • Energy Resources of Australia (ASX: ERA) estimates the cost of rehabilitating its decommissioned Ranger project to blown out to $1.6bn to $2.2bn from a 2019 estimate of just $973m 

Earnings 

 

Written By

Kerry Sun

Finance Writer & Social Media

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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