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Highlights
- S&P/ASX 200 rises 0.55% in early trade on March 18.
- Commodities gain as China’s economic data boosts sentiment.
- Gold Road Resources (ASX:GOR) declines after production forecast revision.
The Australian share market started on a positive note on March 18, with the S&P/ASX 200 advancing 43 points, or 0.55%, to 7,897.1 in early trade. Despite this uptick, the index remains flat over the past five days and has recorded a 3.21% decline year to date.
Market momentum was largely driven by positive economic indicators from China, which lifted commodity prices. Nine out of the 11 sectors were in positive territory, with utilities leading the way with a 0.4% gain. Energy and industrials also showed strength, rising 0.08% and 0.02%, respectively, while the materials sector dipped 0.1%.
Gold Road Resources (ASX:GOR) Sees Decline on Production Outlook
Gold Road Resources (ASX:GOR) experienced a 2.27% drop to $2.58 after providing an updated production outlook for the Gruyere joint venture. The company announced that gold production for the March 2025 quarter is expected to range between 70,000 and 73,000 ounces, a notable decline from the 91,631 ounces produced in the December 2024 quarter.
The decrease is attributed to maintenance work on the primary crusher and unexpected failures of two conveyor belts. The Gruyere JV team has conducted an investigation into the issues and implemented a recovery strategy to mitigate further disruptions.
China’s Economic Data Lifts Commodity Prices
China’s latest economic data provided a boost to commodity markets, reinforcing positive sentiment. The ANZ China Commodity Index edged up 0.1%, with precious and industrial metals both gaining 0.5%.
Copper prices climbed to a five-month high, continuing the strong momentum observed in late 2024. Meanwhile, China’s industrial production rose by 5.9% year-over-year, with retail sales and fixed asset investment exceeding 2024’s average growth rates, at 4.0% and 4.1%, respectively.
In an effort to stimulate further economic activity, China has introduced a special action plan featuring 30 measures aimed at boosting domestic consumption and increasing household incomes. This development prompted a revision in China’s GDP growth forecast for 2025, increasing from 4.3% to 4.8%.
Mixed Performance in Key Commodities
Among base metals, aluminium saw gains, while iron ore prices slipped amid ongoing concerns about China’s property sector. Despite this, the overall sentiment remains positive as China’s latest policy moves suggest a focus on economic recovery.
The S&P/ASX 200, which tracks the performance of Australia’s top 200 listed companies, continues to serve as a key indicator of the country’s equity market. With commodity markets reacting to China’s policies, investors are closely monitoring further economic data and sector-specific developments.
