ASX Flat Amid Rising Uranium and Aluminum Stocks

November 17, 2024 05:08 PM PST | By Team Kalkine Media

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ASX Flat Amid Rising Uranium and Aluminum Stocks — Image source: shutterstock

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Highlights

The Australian market saw mixed performance with commodities stocks rallying.

Uranium and aluminum stocks surged, fueled by geopolitical developments.

Health and tech sectors retreated while mining giants outperformed.

The Australian share market displayed resilience on Monday, trimming early losses as strong performance in commodities sectors balanced declines in health and tech stocks. The S&P/ASX 200 Index remained flat at 8289.6 by midday, following a slight dip of 0.1 percent last week. This performance reflected tempered enthusiasm around "Trump trades" and recalibrated expectations for interest rate cuts by the Federal Reserve.

Among the 11 market sectors, four ended in the red, led by the health sector, although the number marked an improvement from seven declining sectors earlier in the session.

The financial sector exhibited mixed results. National Australia Bank (ASX:NAB) slipped 0.8 percent after regulatory scrutiny, with the securities watchdog accusing the bank of breaching the National Credit Code between 2018 and 2023. Commonwealth Bank (ASX:CBA) fell 1.4 percent, whereas Westpac (ASX:WBC) edged up by 0.2 percent.

Mining stocks remained a strong point in the market, with leading players demonstrating gains. BHP (ASX:BHP) climbed 0.7 percent, while Rio Tinto (ASX:RIO) surged 1.5 percent despite weaker iron ore prices. A rally in uranium, gold, and aluminum stocks bolstered these gains, driven by broader geopolitical and policy changes.

Uranium stocks saw significant momentum after Russia announced restrictions on exporting enriched nuclear fuel to the U.S. This news led to a remarkable performance for companies like Silex Systems (ASX:SLX), which soared 11 percent, alongside Paladin Energy (ASX:PDN) and Boss Energy (ASX:BOE), each advancing nearly 7 percent.

Aluminum prices also benefited from China’s potential move to eliminate a tax incentive for aluminum exports. If implemented, the policy could substantially boost aluminum stock prices. South32 (ASX:S32) surged 5.6 percent, adding to Rio Tinto’s gains.

Several other stocks experienced notable moves. Resolute Mining (ASX:RSG) dropped 3.8 percent after agreeing to a $247 million settlement with Mali amid ongoing leadership detentions. Meanwhile, FleetPartners (ASX:FPR) gained almost 6 percent following a stronger-than-expected FY24 earnings report.

However, the session also saw declines in sectors such as retail and technology. Online retailer Cettire (ASX:CTT) slid over 4 percent, while family app Life360 (ASX:360) fell by more than 6 percent as its CEO reduced personal holdings. Jewelry retailer Lovisa (ASX:LOV) shed over 5 percent following a downgraded rating from neutral.

While commodity-driven sectors propped up the market, other industries faced pressures, creating a mixed trading day for the ASX.

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