AUS
NZ
UK
CA
USA
IND
Highlights
- ASX rises broadly despite a mixed session on Wall Street.
- Star Entertainment reports a $1.7 billion loss.
- Brickworks gains 8.1% despite posting a net loss.
The Australian sharemarket experienced a broad rally on Thursday, pushing the S&P/ASX 200 Index up by 0.9%, or 72.2 points, to 8198.6 by the afternoon. All sectors showed positive movement, despite Wall Street’s less-than-stellar session, where the Dow Jones slipped by 0.7%. The rally comes as reports suggest China is preparing to roll out additional stimulus measures, boosting investor confidence.
Consumer Discretionary and Mining Stocks Lead the Way
The consumer discretionary sector stood out with impressive gains. Wesfarmers (ASX:WES) rose by 1.7%, Aristocrat (ASX:ALL) surged 3.3%, and JB Hi-Fi (ASX:JBH) saw a 2.9% increase, reflecting strong performance in retail and entertainment stocks.
In the mining sector, major companies followed rising iron ore prices. Rio Tinto (ASX:RIO) added 1%, while BHP Group (ASX:BHP) edged up by 0.1%, continuing its upward trend this week with a 6% cumulative gain. Singapore futures showed iron ore prices rising to $US97.15 per tonne, a factor contributing to the strength of mining stocks.
China Stimulus Boosts Market Sentiment
A report from Commonwealth Bank suggests that Beijing is on the verge of introducing new stimulus measures, fueling optimism in markets tied to China’s economic performance. This follows a policy blitz from China’s central bank earlier in the week, further supporting commodity prices and equities that are exposed to the world’s second-largest economy.
Star Entertainment Posts $1.7 Billion Loss
Casino operator Star Entertainment (ASX:SGR) posted a significant $1.7 billion loss for the full year, as the company faced financial challenges while seeking new funding. Trading in Star Entertainment shares had been suspended, but they are expected to resume trading later this week.
Washington H Soul Pattinson and Brickworks Shine
Washington H Soul Pattinson (ASX:SOL), the conglomerate with investments in New Hope (ASX:NHC), TPG Telecom (ASX:TPG), and Brickworks (ASX:BKW), climbed by 1.5%. Despite reporting a 27.8% decline in net profit to $498.8 million for FY24, the company maintained strong market confidence.
Meanwhile, Brickworks rallied by 8.1% after exceeding profit expectations, despite reporting a statutory net loss of $119 million for FY24. The loss was largely driven by non-cash property devaluations and losses on property sales.
Market Movers and Corporate Updates
In other corporate news, Platinum Asset Management (ASX:PTM) rejected a takeover bid from Regal Funds Management, stating that the offer undervalued the company. Additionally, Stockland (ASX:SGP) climbed 0.9% after the ACCC approved its acquisition of Lendlease residential projects.
The market’s rally, fueled by optimism around Chinese stimulus, presents a positive outlook for investors, even as certain sectors face challenges.
