ASX ends higher after mixed session
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The news: The Australian sharemarket ended higher after a mixed session which was led by a rally in telecommunication services and a drag from energy.
The numbers: The benchmark ASX 200 gained 0.13% to end at 8,187.4, with eight out of 11 sectors finishing in green.
The IT sector was the best performing sector, up 1.41%, followed by telecommunication services (1.4%). with a notable rise from REA Group (2.25%) following its annual general meeting. However, its chair Hamish McLennan told investors that the company did not know how news of its bid for Rightmove was leaked to the press.
APA Group pared back earlier gains to end 3.11% higher after the energy regulator made a preliminary ruling that the company’s south west Queensland Pipeline should not be subject to full price regulation.
Newmont Corporation announced that it is selling its Akyem operation in Ghana to China’s Zijin Mining Group for about $1.48 billion which led the stock to increase 0.77%.
The worst performing sector was energy, down 2.45%, after oil prices slid more than 4% on expectations of a possible ceasefire between Hezbollah and Israel. Karoon Energy (-4.52%), Beach Energy (-3.14%) ,Woodside (-2.92%), Ampol (-2.68%), and Santos (-1.93%) all fell.
Lithium miners were the worst performers across the ASX 200, reversing recent gains over the last few weeks. Mineral Resources tumbled 7.07%, followed by Liontown Resources (-5.99%) and Pilbara Minerals (-5.33%).
Materials (-1.39%) extended losses after China's economic agency failed to provide new stimulus announcements as anticipated at a briefing on Tuesday. Rio (-2.36%), Fortescue (-2.23%) and BHP (-1.39%) all fell.
Elsewhere, Louis Dreyfus Company sealed its takeover bid for Namoi Cotton after rival bidder Olam Agri’s offer lapsed today. LDC currently has a 71.96% stake in Namoi as more shareholders have accepted its offer.
The Australian dollar is buying 67.49 US cents.
The context: Overnight will see the release of the US Federal Reserve’s latest monetary policy meeting minutes.
The 44th ASEAN Summit in Vientiane, Laos, will continue on Thursday.
