ASX reaches another record high as energy rallies
Make us a preferred source
Make us a preferred source on Google
The news: The Australian sharemarket hit another record high as oil producers and iron ore miners rallied.
The numbers: The benchmark ASX 200 gained 0.7% to end at 8,269.8, with six out of 11 sectors finishing in green. It also hit an intraday high of 8,285.4.
The best performing sector was energy, up 2.6%, followed by materials (1.76%). Energy stocks rallied on the back of a rise in oil prices due to potential supply disruptions in the Middle East.
Oil and gas majors Karoon Energy (6.85%), Woodside Energy (3.2%), Beach Energy (2.98%), Santos (2.49%) and Ampol (0.97%) all rose. Karoon also announced that its Who Dat operations had restarted after a precautionary shut-in as Hurricane Helene made landfall.
Iron ore miners also gained after prices surged as much as 10.6% during morning trade as three of China's biggest cities eased curbs on home-buying, boosting the demand outlook in the world’s biggest consumer of iron ore. Fortescue (2.94%), BHP (2.55%), and Rio (1.7%) all increased. Rio also received a price target upgrade from RBC Capital analysts thanks to its Canadian aluminium assets.
The Star Entertainment was the best performer across the ASX 200 as its shares rocketed 18% after lodging its response to a 'show cause' notice from the NSW casino regulator, clawing back some losses after it plunged 40% on Friday.
Fletcher Building advanced 6% after it submitted a capital change notice, ahead of completing its NZD700 million ($642 million) equity raising.
Mesoblast gained 3.56% after announcing that it would raise up to USD50 million ($72.7 million) from top shareholder Gregory George via convertible notes it received US Food and Drug Administration (FDA) approval for its drug candidate Ryoncil.
Liontown Resources jumped 2.55% after it announced its first shipment of spodumene concentrate from its flagship Kathleen Valley operation.
Brambles increased 1.61% after it announced the appointment of chief digital officer Helen Lane as its new CEO for its Europe business, and has recruited McKinsey partner Louise Herring as her replacement.
REA edged 0.54% higher after it urged Rightmove's board to engage after submitting a fourth takeover offer, while analysts expect the group will need to improve its bid further.
Elsewhere, Synlait Milk shares jumped 7.04% despite posting a full-year net loss to NZD182.1 million following hefty impairments. The company does expect to generate sufficient cashflows and have sufficient headroom in banking facilities to make good on its obligations to all creditors.
The worst performing sector was telecommunication services, down 0.32%, followed by consumer staples (-0.21%).
Gold miners made up seven out of the 10 worst performers across the ASX 200 as the spot bullion price edged lower. Genesis Minerals (-4.19%), Emerald Resources (-3.25%), Ramelius Resources (-3.08%), West African Resources (-3.08%), Perseus Mining (-3%), Capricorn Metals (-2.71%) and Newmont Corporation (-2.7%) all fell.
AGL fell 1.75% after announcing it had finalised a new agreement to supply additional electricity for the Portland aluminium smelter in Portland, Victoria.
Pacific Smiles lowered 1.09% after it announced that it would recommend shareholders to reject the latest takeover bid by long-time suitor Genesis Capital.
The Australian dollar is buying 69.28 US cents.
The context: Overnight will see US Federal Reserve chair Jerome Powell will speak at the National Association for Business Economics Annual Meeting in Nashville.
Tuesday will see the Australian Bureau of Statistics release the latest building approvals and retail trade data. The Lottery Corporation will also hold its annual general meeting.
