ASX hits record high; gold miners rally, Magellan sell-off continues
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The news: The Australian sharemarket ended the week at a record high, tracking gains on Wall Street as local investors remained optimistic about a potential interest rate cut in February.
The benchmark ASX 200 gained 0.45% to end at 8,532.3, with nine out of 11 sectors finishing in green. The index also hit an intra day high of 8,566.9.
Biggest movers:
- Vault Minerals (6.85%) — Gold prices rose to a record high, with US President Donald Trump's latest threats to impose tariffs on Mexico and Canada stoking concern over global economic impacts. Emerald Resources (4.59%), Newmont (3.83%) and Bellevue Gold (3.73%) were all part of the top 10 performing ASX 200 stocks. Emerald also reported record production at its Okvau gold mine in Cambodia during the December quarter.
- Magellan Financial Group (-7.65%) — Jarden downgraded the stock to ‘underweight’ following the departure of head of investments Gerald Stack.
- Origin Energy (-6.7%) — Cut its production guidance from its Australia Pacific LNG project and reported a slight dip in December quarter output.
Deals:
- Lendlease (2.04%) — Has agreed to sell its infrastructure investing business Capella Capital to Japanese trading company Sojitz Corporation for $235 million.
- Capricorn Metals (1.18%) — Agreed to buy the prospective Mummaloo project that is located adjacent to its under development Mount Gibson gold project in Western Australia.
- NAB (0.6%) — Has struck a $300 million green co-financing program with the Clean Energy Finance Corporation to cut the borrowing costs of manufacturers, businesses and farmers.
Other news:
- Sandfire Resources (3.84%) — UBS upgraded their rating on the stock to ‘neutral’ from ‘sell’ as the copper and nickel miner's cost performance was "very good" during the December quarter.
- Mesoblast (3.6%) — Announced that it expects to launch its cell therapy product Ryoncil in the US this quarter.
- IAG (3.02%) — announced that it expects to release $200 million of a $380 million provision linked to a discontinued Federal Court class action.
- Pacific Current (-0.25%) — Reported a lift in funds under management for the December quarter.
- Ramsay Health Care (-0.5) — Announced that its chief financial officer Martyn Roberts and Australia chief executive Carmel Monaghan are exiting the business.
- ResMed (-0.79%) — Posted strong revenue growth and expanded margins across its global sleep and respiratory care businesses in the December quarter.
- IGO (-2.57%) — Analysts reduced their forecasts on the lithium and nickel miner, after its second-quarter result missed market estimates.
- Dubber (-16.67%) — Posted its Q2 results and announced that it had repaid the tax office $6.8 million for historic tax liabilities. The company also noted that it had no updates regarding the recovery of the $26.6 million missing company funds.
The Australian dollar is buying 62.25 US cents.
What’s ahead: Next week will see the latest retail sales and building approvals data while Argo Investments, Pinnacle, Amcor, REA and Beach Energy will post earnings.
