ASX Gains on Mining Rebound; WiseTech Faces Major Drop

2 min read | October 21, 2024 05:36 PM AEDT | By Team Kalkine Media

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Highlights

ASX climbs with strong performance in mining and materials sectors.

WiseTech shares plunge amid CEO controversy and stock sales.

Gold and energy stocks rally with rising commodity prices.

The Australian sharemarket saw an uplift on Monday, driven by a rebound in the mining sector and solid results from Wall Street. The S&P/ASX 200 Index increased by 0.7%, closing at 8344.4 points, just shy of its record high. This positive trend was observed across 10 of the 11 sectors, with strong contributions from the materials and financial sectors.

Mining stocks led the charge, benefiting from a rise in commodity prices. BHP (ASX:BHP) advanced 1.4%, reaching $42.64, while Rio Tinto (ASX:RIO) gained 1.9%, closing at $119.81, as iron ore prices rose 1.3% to $US103 per tonne. Gold producers also posted strong gains with West African Resources (ASX:WAF) surging 7.2% to $1.71 and De Grey Mining (ASX:DEG) up 4% to $1.45, supported by gold prices crossing $US2700 an ounce for the first time.

Financial stocks followed suit, with Commonwealth Bank (ASX:CBA) rising by 1.2% to $144.45. Energy companies also benefited from higher oil prices, as Woodside Energy (ASX:WDS) added 1.3% to $24.95, and Santos (ASX:STO) increased by 1.5% to $7 after crude oil prices climbed to $US74 per barrel.

However, not all sectors saw gains. WiseTech Global (ASX:WTC) experienced a sharp decline, plunging 14.6% to $104.65 following news of legal issues involving its founder and CEO, Richard White. The company is conducting a review of the situation, while White continues to reduce his stake, having sold over 350,000 shares recently. The controversy surrounding the CEO pulled down the broader information technology sector.

Mineral Resources (ASX:MIN) also faced challenges, dropping 13.8% to $39.55 after an investigation raised concerns about tax evasion involving its managing director. The company has engaged legal counsel to address the issue. Meanwhile, furniture retailer Nick Scali (ASX:NCK) saw a 4.1% drop to $14.50 after issuing a profit warning due to rising shipping costs, impacting margins.

The overall market remains positive, buoyed by strength in key sectors like mining and energy, despite some notable exceptions.

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