ASX closes at record high as materials rally
Make us a preferred source
Make us a preferred source on Google
The news: The Australian sharemarket ended at a record high as the materials sector rallied off the back of China’s new stimulus measures.
The numbers: The benchmark ASX 200 rose 0.1% to end at 8,212.2, despite eight out of 11 sectors finishing in red.
The best performing sector was materials, up 2.78%, followed by consumer staples (0.91%). Mining stocks surged on the ASX after China's central bank lowered interest rates and injected liquidity into its banking system, after Chinese leaders pledged “necessary fiscal spending” to meet the country’s 5% growth target.
The Australian sharemarket's largest iron ore companies BHP (3.09%), Fortescue (3.61%), Rio Tinto (3.17%), Mineral Resources (13.84%) and Champion Iron (6.99%) were all trading higher.
The A2 Milk Company shares jumped 8.89% before entering a trading halt as it is preparing an announcement regarding a "potential acquisition" by the company.
De Grey Mining shares rose 3.36% after it denied a media report that it received a buyout proposal from Canada’s Agnico Eagle.
Brickworks shares ended 0.11% higher, a day after the construction materials supplier closed as the best performing stock across the ASX 200. However, analysts downgraded the stock following its full-year results.
Webjet's newly listed spin-off B2C company Webjet Group extended gains before pulling back as it ended flat by the end of the trading day. Jarden initiated its coverage of the stock with an 'overweight' rating.
The worst performing sector was healthcare, down 1.32%, followed by AREITs (-0.93%).
The worst performing stock across the ASX 200 was Star Entertainment as its shares plunged 41.11% after emerging from a trading suspension that has been in place since 2 September when it failed to lodge its full-year results.
Endeavour Group shares dropped 2.73% after it announced chief executive and managing director Steve Donohue will step down after six years in the role.
GQG Partners shares fell 3.47% after the US securities regulator fined the fund manager $725,000 for violating whistleblower protection rules.
Namoi shares dropped 0.7% after the competition regulator announced it was seeking views on a proposed court-enforceable divestiture by Singapore-based Olam Agri in relation to its takeover bid for the cotton ginner.
The Australian dollar is buying 68.8 US cents.
The context: Tonight will see the latest US personal consumption expenditure figures released.
