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Market Wrap

Materials boost ASX to end higher

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The news: Uncertainty around China’s next steps to stimulate its economy, combined with the escalating conflict in the Middle East and the prospect of lower interest rates in the US, buoyed the Australian sharemarket, with iron ore miners and gold companies leading Monday’s gains.

The numbers: The benchmark ASX 200 gained 0.47% to end at 8,252.8 despite only three out of 11 sectors finishing in green.

Materials was the best performing sector, up 1.3%, as Citi analysts said they were "tactically bullish" on copper, iron ore and base metals over the next two weeks on expectations of further policy stimulus announcements in China. Iron ore majors Fortescue (3.13%), Champion Iron (1.94%), Rio Tinto (1.65%), and BHP (0.76%) all gained.

Gold miners took three of the top five best performers across the ASX 200 as bullion prices continue to climb due to the conflict in the Middle East and potential further cuts in interest rates in the US. Regis Resources (6.02%), Bellevue Gold (4.04%) and West African Resources (3.47%) rallied.

South32, up 4.17%, was also one of the best performers thanks to rising spot alumina prices.

The biggest news on the ASX today came from:

  • Web Travel Group (-34.57%) — the company flagged ongoing "subdued" margins in Europe for its wholesale bookings business WebBeds;
  • TPG Group (-4.13%) — the telcom group will sell its fibre network infrastructure assets and its enterprise, government and wholesale fixed business to Vocus Group for $5.25 billion; and
  • Seek (0.84%) — the jobs listing platform announced it had entered into an exclusivity deed with global human resources technology platform Xref to acquire all of its shares.

There was also a trove of appointments and retirements as annual general meeting season kicked off today including:

  • Lifestyle Communities (-2.66%) — Co-founder and managing director James Kelly will retire amid property headwinds and media reports of unethical behaviour in new home settlements;
  • Lendlease (-1.72) — Former Bunnings CEO John Gillam has been appointed as its incoming chair;
  • Ansell (-0.78%) — Chief financial officer Zubair Javeed will resign after five years;
  • Pacific Smiles (unchanged) — Gary Carroll has been appointed as managing director and chief executive;
  • Regis Healthcare (2.63%) — Co-founder Bryan Dorman will retire as a non-executive director;
  • Audinate (0.1%) — Chris Rollinson has been appointed as its new CFO; and
  • Clarity Pharmaceuticals (-0.56%) — Head of clinical operations Michelle Parker has been appointed its CEO.

The Australian dollar is buying 0.67 US cents.

What’s ahead: Tuesday will see Telstra, Meridian and Region Group conduct their respective AGMs.

Bank of Queensland will post its FY24 earnings tomorrow.

By Jassmyn Goh