ASX hits record high for third consecutive day
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The news: The Australian sharemarket rallied following news the unemployment rate remained steady in August, lifting the ASX to a new record high for the third consecutive day.
The numbers: The benchmark ASX 200 gained 0.61% to end at 8,191.9, with six out of 11 sectors finishing in green. The index also hit another intraday high at 8,199.6.
The best performing sector was materials, up 2.31%, followed by utilities (1.37%). The best performing stock across the ASX 200 was Sims as it shares rocketed 12.42% after it reported improved first quarter performance at its North American business despite challenging market conditions in Australia and New Zealand.
Strike Energy shares soared 9.76% after the Western Australian government removed its export ban for onshore gas production.
Uranium stocks rose on the ASX after Morgan Stanley upgraded its earnings forecasts on uranium majors Paladin Energy (7.66%) and Boss Energy (4.09%). Deep Yellow also surged 6.49%.
BHP shares lifted 2.68% after Morgan Stanley upgraded it to ‘overweight’ after two years at ‘equal-weight’ due to lowering growth and capital expenditure risks, and copper demand.
Lithium stocks also rallied despite analysts warning that more supply cuts were needed to balance the continued market surplus. Arcadium Lithium (4.76%), IGO (2.95%), Liontown Resources (2.69%), Pilbara Minerals (2.13%) and Mineral Resources (2.05%) were all trading higher.
Monadelphous Group shares advanced 2.05% after the engineering firm said it had been awarded $230 million worth of new construction and maintenance contracts.
Orica shares rose 1.59% after the chemicals and explosives manufacturer said it expected second-half underlying earnings to be better than previously forecast.
The worst performing sector was industrials, down 1.32%, followed by healthcare (-0.52%). The worst performing stock across the ASX was ALS as its shares tumbled 8.36% after the laboratory testing group flagged a profit hit ahead of its half-year results.
The Australian dollar is buying 68.01 US cents.
The context: Tonight will see the Bank of England make its next monetary policy decision. It is widely expected that the central bank will hold rates at 5%.
Also, the latest US unemployment claims data will be released tonight.
Friday will see the Bank of Japan make its latest monetary policy decision.
