Local Markets Surge to Record Highs as Energy and Materials Stocks Propel Growth

Highlights

• ASX 200 sets a new intraday high of 8,271.90 points, driven by mining and energy gains.
• Federal Treasurer Jim Chalmers announces a significant budget surplus of $15.8 billion.
  
• Iron ore prices rise, boosting shares of key mining companies.

Local markets are experiencing a significant boost this morning, with the ASX 200 benchmark reaching a new record intraday high, largely fueled by strong performances from energy and materials stocks. The benchmark initially surged to 8,271.90 points shortly after the market opened, reflecting a 0.6% increase. By midday, this positive momentum continued, with the index climbing to 8,278.6 points, marking a 0.8% gain.

The surge in iron ore prices, which rose by 0.5% to reach US$103 per tonne after a notable 4% increase on Friday, is contributing to this upward trend. The improved outlook in the iron ore market is attributed to the Chinese government’s stimulus packages, aimed at revitalizing the property sector. Major players in the iron ore market are seeing significant gains, with Mineral Resources (ASX:MIN) up 4.23% and Fortescue Metals Group (ASX:FMG) rising by 4.13%. Other key mining companies also performed well, with BHP Group (ASX:BHP) increasing by 2.11% and Rio Tinto (ASX:RIO) adding 2.42%.

In addition to market gains, Federal Treasurer Jim Chalmers announced a budget surplus of $15.8 billion, an increase of $6.4 billion compared to the previous surplus. This marks a significant achievement, as it is the first time in nearly two decades that a federal government has delivered two consecutive surpluses.

On the corporate front, dental group Pacific Smiles (ASX:PSQ) rejected an unsolicited off-market takeover bid from Genesis Capital, urging shareholders to disregard what it termed an “opportunistic” offer. Meanwhile, REA Group (ASX:REA) awaits a response from the UK property portal Rightmove regarding its fourth offer, which has received only a lukewarm acknowledgment thus far.

In overseas markets, the S&P 500 dipped by 0.13% on Friday, while the Dow Jones Industrial Average climbed by 0.33%, reaching a new record. The tech-heavy Nasdaq index fell by 0.39%. Positive investor sentiment was bolstered by August’s Personal Consumption Expenditures (PCE) index, which indicated a modest inflation increase of only 0.1%, below Wall Street’s expectations.

Across Asian markets this morning, Chinese shares surged ahead of a week-long shutdown for national holidays, with Shanghai markets rising 3.20% at midday and Hong Kong’s Hang Seng Index up 0.42%. In Japan, however, the Nikkei index experienced a notable decline of 4.2%, likely influenced by news of a price increase for Umaibo corn puff snacks, which has unsettled the Japanese public.

ASX Small Cap Winners

Several small-cap stocks are making headlines today:

- Odessa Minerals (ASX:ODE): Shares rose early on news of a placement to raise $1,112,500 to fund exploration at the Lyndon Uranium Project.

- Alderan Resources (ASX:AL8): The Stage 1 drilling program at the New Years copper prospect has intersected high-grade copper mineralization, showing promising initial results.

- Citigold (ASX:CTO): A quarterly report highlights progress at its high-grade Charters Towers gold project, which remains focused on gold and other critical minerals.

- Enterprise Metals (ASX:ENT): The results from a recent soil sampling program indicate potential gold resources in Western Australia.

- Burley Minerals (ASX:BUR): The company has received an exploration license for the Cane Bore Iron Ore Project, marking a significant milestone in its operations.

- Triangle Energy (ASX:TEG): The joint venture with Strike Energy (ASX:STX) and Echelon Resources (ASX:ECH) has received approval to drill the Becos-1 well.

- RMA Global (ASX:RMY): The company announced a strategic partnership with Realty ONE Group to integrate its technology and enhance agent reviews on the Realty ONE Group website.

The positive trends in local markets and promising developments among key companies indicate a vibrant atmosphere as investors closely monitor the evolving economic landscape.