AUS
NZ
UK
CA
USA
IND
Highlights
- The Australian sharemarket experienced a notable rally, with the S&P/ASX 200 Index rising 1% due to positive stimulus news from China.
- Major mining stocks, including Rio Tinto and BHP Group, saw significant gains amidst higher iron ore prices.
- Consumer discretionary stocks also performed well, led by Wesfarmers and Aristocrat Leisure.
A robust rally in the mining sector propelled the Australian sharemarket higher on Thursday, following China’s announcement of additional stimulus measures aimed at supporting its economic growth targets. The benchmark S&P/ASX 200 Index climbed 1%, adding 77.3 points to reach 8203.7 at the closing bell, with 10 of the 11 sectors registering gains. The All Ordinaries index increased by 1.1%.
Mining Sector Drives Growth
The mining sector rallied late in the session, buoyed by rising iron ore prices, which surpassed $US98 per tonne in Singapore. This surge followed remarks from President Xi Jinping, who emphasized the need for substantial fiscal spending to back the stimulus package introduced earlier by China’s central bank. Reports indicate that stabilizing the property market—a major consumer of iron ore—will involve limiting new commercial housing construction.
Shares in Rio Tinto (ASX:RIO) jumped by 2% to $123.22, while BHP Group (ASX:BHP) advanced 1.6% to $43.36, marking a 7.6% increase for the week. Fortescue Metals Group (ASX:FMG) rose by 2.9% to $19.40.
IG analyst Tony Sycamore noted that the prospect of increased stimulus from the Chinese government helped the ASX recover from its recent downward trend, following a policy blitz from the central bank that invigorated mining stocks and commodity prices.
Consumer Sector Shows Strength
The consumer discretionary sector also performed strongly, climbing 2%. Notable performances included Wesfarmers (ASX:WES), which increased by 1.5% to $70.99, Aristocrat Leisure (ASX:ALL), which rose by 2.8% to $58.09, and JB Hi-Fi (ASX:JBH), which advanced 3% to $80.98.
Noteworthy Company Updates
In corporate news, Star Entertainment Group (ASX:SGR) released its financial results after a nearly month-long suspension from the ASX, revealing a substantial $1.7 billion loss for the fiscal year. Trading of its shares is expected to resume later this week.
Washington H. Soul Pattinson and Co. Ltd (ASX:SOL) saw its shares rise 2.2%, despite reporting a 27.8% decline in net profit to $498.8 million for FY24, attributed to lower contributions from Brickworks (ASX:BKW) and New Hope Corporation (ASX:NHC).
Platinum Asset Management (ASX:PTM) rejected a takeover proposal from Regal Funds Management (ASX:RFP), stating that the terms undervalued the company. Shares of Platinum rose by 1.8% to $1.145, while Regal jumped 2.3% to $3.60.
In further developments, the Australian Competition and Consumer Commission (ACCC) announced it would not oppose Stockland Corporation (ASX:SGP) and Supalai's proposed acquisition of 12 Lendlease residential projects, leading to a slight increase of 0.4% in Stockland's shares to $5.31.
Additionally, Brickworks Limited (ASX:BKW) surged 7.2% to $28.52 after reporting better-than-expected underlying profit figures, despite posting a net loss of $119 million for FY24 due to a non-cash property devaluation and losses from property sales.
