AUS
NZ
UK
CA
USA
IND
Highlights
- ASX climbs, supported by mining and healthcare sectors.
- WiseTech falls amid controversy.
- Iron ore and gold prices boost BHP and Rio Tinto.
Australia's sharemarket experienced a notable rise on Monday, driven by strong momentum from Wall Street and a solid rebound in the mining sector. The S&P/ASX 200 Index moved up by 0.6%, adding 48.5 points to reach 8331.7 by midday, edging closer to its all-time high of 8355.9.
This upward movement was supported by a record-setting session in the US, where the S&P 500 marked its 47th high of the year, thanks to solid earnings reports. Year-to-date, the index has surged by a significant 24%.
The materials sector led the way in Australia, benefiting from the recovery of iron ore prices and the continued rise of gold, which surpassed $US2700 per ounce. Key mining stocks such as BHP (ASX:BHP) and Rio Tinto (ASX:RIO) gained over 1%, while West African Resources (ASX:WAF) surged 6%, and De Grey Mining (ASX:DEG) saw a 4% increase.
In the healthcare sector, strong performances also contributed to the overall rise in the ASX. Stephen Miller, a market strategist at GSFM Funds Management, noted that the sharemarket's strong performance could be attributed to factors such as global interest rate cuts and the resilience of the US economy. However, he cautioned about potential market complacency in the current price movements.
While many sectors performed well, not all stocks followed the upward trend. WiseTech (ASX:WTC) saw a sharp decline of over 10%, driven by allegations against its founder and CEO, Richard White. These claims, involving a significant financial settlement with a former partner, were compounded by White's continued sale of shares in the company. Between October 11 and 17, he sold 351,038 shares at an average price of $131.22 per share.
Additionally, Mineral Resources (ASX:MIN) dropped by 13% following a report investigating tax-related issues surrounding its managing director, Chris Ellison. The company has enlisted external legal counsel to review the situation and advise its board.
Elsewhere, Nick Scali (ASX:NCK) fell 5.2% after warning that rising freight costs would impact its profit margins. The furniture retailer announced a projected net profit for Australia and New Zealand between $30 million and $33 million for the first half.
