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Highlights
- The Australian sharemarket gains with positive movement across multiple sectors.
- Energy stocks rise with Brent crude, while mining giants benefit from iron ore price increases.
- The Star (SGR) rises sharply as a mystery investor purchases significant shares.
The Australian sharemarket saw a modest climb on Tuesday, recovering from a recent two-week low, as investors sought opportunities across a broad range of sectors. The S&P/ASX 200 Index closed up by 0.3%, or 23.2 points, at 8215. This rebound came as bargain hunters moved in, with gains observed in nearly every sector—energy, materials, and consumer discretionary stocks saw significant improvements. Only the technology sector experienced slight losses. The All Ordinaries also gained 0.3%, adding more momentum to the market’s positive trend.
This recovery followed a 1% dip on Monday, largely fueled by growing skepticism around US rate cut expectations. On the global front, the S&P 500 saw a reversal of earlier losses, finishing slightly up at 0.2% by Tuesday morning (AEDT).
Energy stocks found some tailwinds with Brent crude prices continuing their rise, advancing by 1.6% to $81.01 a barrel. As a result, shares of Ampol (ASX:ALD) rose 1.8%. Simultaneously, mining heavyweights tracked the higher prices of iron ore, which touched $98.90 a tonne. Fortescue Metals (ASX:FMG) saw a 1.5% increase, while BHP (ASX:BHP) gained 0.7%.
According to market analysts, January typically witnesses some pullbacks in the Australian sharemarket, but these mid-month dips have often proven to be strong opportunities for investors to capitalize on in the months ahead. Bell Potter’s Richard Coppleson noted that enduring this period historically leads to a solid market rally extending into late April.
One of the biggest gainers on the ASX was The Star Entertainment Group (ASX:SGR), with a remarkable 12% surge following news of a mystery investor from Macau, Wang Xing Chun, acquiring an additional 28 million shares in the beleaguered casino operator. This came at a critical time for The Star as it works to resolve ongoing financial challenges and prevent a collapse, negotiating terms with its lenders.
Meanwhile, City Chic Collective (ASX:CCX) surged 16.7% after reporting strong holiday season trading, despite seeing a 3.6% decline in revenue during the second half of 2024. In the minerals sector, Energy Transition Minerals (ASX:ETM) added 7% as it extended earlier gains and outlined plans to strengthen relationships with the Greenland government concerning its rare earths mining project. Additionally, Telix Pharmaceuticals (ASX:TLX) saw a 3.4% gain after reporting a 46% increase in quarterly revenue.
This positive momentum across diverse sectors suggests that market participants are beginning to re-evaluate risk-reward opportunities as the year progresses.
