Jannah Theme License is not validated, Go to the theme options page to validate the license, You need a single license for each domain name.

“Iron Ore Confidence Propels ASX to Three Consecutive Days of Gains”

Australian shares continued their upward momentum on Wednesday, propelled by optimism in the iron ore sector amidst an improved outlook for this crucial steel-making ingredient.

The S&P/ASX200, the benchmark index, surged by 0.3 percent, or 24.3 points, reaching a tally of 7848.5 points. Eight out of eleven industry sectors closed in positive territory, indicating broad-based gains across the market. The broader All Ordinaries index exhibited even stronger performance, climbing by 0.4 percent.

Despite the market’s ascent, the Australian dollar experienced a slight decline against the US dollar, settling at US66.23c by the close of trading.

Investor attention was particularly focused on upcoming US inflation data scheduled for release at 10:30 PM AEST, with analysts keenly anticipating whether recent trends of higher-than-expected consumer prices would persist. Any evidence suggesting persistent inflation could cast doubts on the Federal Reserve’s willingness to implement interest rate cuts as swiftly or deeply as previously anticipated.

Tracking the surge in iron ore prices, which traded at $US106.75 per tonne on the Singapore Exchange due to optimistic consumption prospects, major miners saw substantial gains. Rio Tinto, buoyed by the positive sentiment, climbed by 1.9 percent to $127.75, concurrently announcing a $14.4 million investment in start-up accelerator Founders Factory. BHP and Fortescue, fellow iron ore producers, also experienced notable upticks, adding 0.7 percent and 1.9 percent, respectively.

ANZ analysts Brian Martin and Daniel Hynes highlighted the bustling construction activity in China during April and May, traditionally peak periods for the sector. Anticipation of increased output from blast furnaces has already begun, complemented by a slight decline in inventories at Chinese ports in recent weeks.

In other sectors, real estate emerged as the top performer, ascending by 1.2 percent. Companies like Goodman Group, Scentre, and Lendlease posted gains, driven by positive market sentiment. Healthcare stocks also contributed to the market rally, led by CSL, a heavyweight in the sector.

Conversely, interest rate-sensitive tech stocks experienced declines, dragging the market slightly. Wisetech and Xero were among the notable laggards, slipping by 3 percent and 1.2 percent, respectively.

In corporate developments, Whitehaven Coal’s shares advanced by 3 percent following news of private equity firm Vanguard bolstering its stake in the company. Conversely, Perseus Mining’s shares dipped by 2.6 percent as its takeover bid for Canada’s Silvercorp Metals was accepted, impacting gold hopeful OreCorp, which saw a slight decline in its shares.

Related Articles

Back to top button