ASX closes higher; Iluka Resources leads mining rally as banks fell
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The news: The Australian sharemarket finished higher as a rare earths and uranium producers rally offset broad losses across the exchange, including the biggest banks.
The benchmark ASX 200 rose 0.19% to end at 8,899.4 although five out of the 11 sectors finised in the green.
The materials sector (+2.3%) was the best performing as rare earth producers Lynas Rare Earths (+5%) and Iluka Resources (+15.8%) posted gains in the wake of new export controls announced by China last week. Iluka was the best performer on the ASX 200.
Gold miners also rallied, tracking the record-breaking run of the spot price for the commodity, which breached USD4,100 per ounce for the first time overnight. Catalyst Metals (+14%), Genesis Minerals (+5.4%) and Greatland Resources (+4.7%) were among the biggest gainers. BHP (+2.2%), Fortescue (+1.8%) and Rio Tinto (+1.8%) also finished higher.
Rio Tinto upgraded its full-year bauxite production guidance as the Amrun mine continued to exceed nameplate capacity and reaffirmed output forecasts across the rest of the business.
The consumer discretionary (-1%) sector was the worst performing as Wesfarmers (-1.2%), Aristocrat (-1.2%) and JB Hi-Fi (-1.5%) posted losses. The finance sector (-0.5%) also fell as Commonwealth Bank (-0.5%), Westpac (-1.2%), NAB (-1%) and ANZ (-0.3%) finished lower.
Biggest movers:
- Uranium miners – Paladin Energy (+9.6%) hit record quarterly production since the reopening of its Langer Heinrich Mine in March 2024 but sales slipped due to a shipment delay. Deep Yellow (+13.5%) and Boss Energy (+4.2%) also finished higher helping lift the energy sector (+1.4%).
- HMC Capital (+8.7%) – Rallied for a second day after it was announced to the exchange on Friday evening that Chemist Warehouse co-founder Mario Verrocchi had become a substantial shareholder.
- DroneShield (-6.5%) – Announced a new software update that enables integration of the company’s counter-drone intelligence with the Team Awareness Kit command and control ecosystem.
Deals news:
- Elanor Commercial Property Fund (-2.2%) – Lederer Group confirmed it had secured a 42.68% stake in the Elanor Commercial Property Fund after its off-market takeover offer closed on Monday. Lederer Group chair Paul Lederer said he is "delighted".
- Capstone Copper (+3.4%) – Agreed to sell a 25% stake in its Santo Domingo copper-iron-gold project in Chile to funds managed by investment firm Orion Resource Partners for a cash consideration of up to USD360 million ($552.4 million).
- NSX Limited (0%) – Will be acquired by the Canadian Securities Exchange following federal court approval of the scheme of implementation. When the scheme becomes effective on Wednesday, NSX Limited will finish its last day of trading on the ASX. It will delist on 27 October.
Other news:
- Genesis Energy (+2.3%) – The electricity and natural gas retailer has upgraded its full-year earnings guidance, telling investors that "favourable hydrology and wind outcomes" helped it deliver a positive first-quarter performance.
- Santos (0%) – Chief financial officer Sherry Duhe has resigned from the company after a year in the role. She will be replaced by deputy CFO Lachlan Harris in an acting capacity.
- Ansell (-0.1%) – The healthcare equipment provider told the exchange an unidentified unauthorised access to sets of company data, including confidential transactional data and personally identifiable information.
- Light & Wonder (-0.9%) – The dual-listed gambling company confirmed that it will delist from the Nasdaq on 13 November.
- ASX Limited (-1.7%) – Chief executive Helen Lofthouse told Capital Brief she is unconcerned about Cboe Australia entering the listings market and insisted the ASX is not a monopoly.
What’s ahead:
- RBA assistant governor Sarah Hunter will speak at the Citi Australia and New Zealand Investment Conference tomorrow at 10:30am AEDT.
