Australian shares start week higher as miners bounce
Adrian Black |
The share market has begun the week in positive territory as select miners, energy stocks and financials rally after hopes of an end to the US government shutdown eased investor jitters.
The S&P/ASX200 rose 0.32 per cent by midday, up 28.4 points to 8,798.1 as the broader All Ordinaries gained 0.44 per cent, adding 39.8 points to reach 9,071.6.
The early gains on the local bourse follow a late rally on Wall Street on Friday, amid hopes a budget deal could end the longest US government shutdown in history, which would bring the return of key macroeconomic data.
“The move was ultimately little more than putting lipstick on the proverbial pig,” Capital.com market analyst Kyle Rodda said.
“But it has been enough to establish what’s looking like a more upbeat tone to start the new trading week.”
Six of 11 local sectors were trading higher by lunchtime, with the heavyweight materials and financial sectors stronger after coming under selling pressure last week.
ANZ was the best of the big four banks, up two per cent to $37.54 despite disappointing investors with a flat full-year cash profit of $6.89 billion, excluding $1.1 billion in significant items including regulator fines and redundancy costs.
Westpac gained one per cent while NAB traded flat and CBA edged lower to $175.41 a share.
Macquarie rebounded 0.8 per cent to $206.43 after plummeting 5.7 per cent on Friday when its half-year update disappointed investors.
The raw materials sector outperformed the broader market, lifted by a rebound in gold, critical minerals and rare earths miners.
Lithium producer Liontown Resources was the top-200’s best performer, up 9.3 per cent to $1.12.
ASX-listed gold stocks such as Evolution, Northern Star and Newmont moved 1.5 per cent higher as spot gold traded at $US4,016 ($A6,170) an ounce.
Iron ore giants BHP, Rio Tinto and Fortescue each fell as ore prices dipped to two-month lows below $US103 a tonne on weakening steel demand and production cuts in China.
Energy stocks gained 0.8 per cent, tracking with an uptick in oil prices on hopes the US government shutdown could come to an end.
Coal producers were mixed, while uranium plays caught a bid after a dramatic sell-off last week.
Australia’s tech sector gained one per cent, supported by a nearly three per cent bounce in WiseTech Global, whose share price tanked more than 20 per cent last week in the wake of police raids and an ongoing investigation into improper trading allegations.
Shares in Monadelphous soared nine per cent after the engineering company flagged a $1.5 billion first-half profit, thanks to more than $570 million in new contracts.
Defence technology stock Droneshield also rebounded strongly after announcing a new contract with the US government, putting it on track for its second positive session of the previous nine.
Utilities stocks tumbled 0.6 per cent, with Origin and APA heavy, while AGL edged one per cent higher after announcing it would divest some of its 20 per cent stake in Tilt Renewables to existing shareholders, the Futures Fund and other entities led by the Queensland Investment Commission.
The Australian dollar is buying 65.07 US cents, up from 64.80 US cents on Friday at 5pm.
AAP
