The Australian sharemarket opened higher, driven by gains in major banks and gold miners. This followed a rally in precious metals after a period of declining commodity prices. The benchmark S&P/ASX 200 Index increased by 0.6 per cent, or 51.5 points, reaching 8937 at the start of trading, with eight out of eleven sectors showing positive movement.
The materials sector experienced growth, mirroring the rising gold price which rebounded after a 5 per cent drop over the previous four sessions. Gold saw a surge of up to 2.5 per cent as investors assessed the outcomes of a meeting between US President Donald Trump and Chinese leader Xi Jinping. Gold producers like Westgold, Newmont, Bellevue Gold and Evolution were among the top performers on the ASX 200, alongside gains from all the major banks, including Commonwealth Bank.
In company news, ANZ’s upcoming full-year results will reflect changes under its new leadership, including a $1.1 billion after-tax adjustment. Elsewhere, sleep device maker ResMed, which develops, manufactures, distributes, and markets medical devices and cloud-based software solutions, reported a 9 per cent increase in first-quarter earnings and announced plans to expand its US manufacturing operations. Mayne Pharma, a specialty pharmaceutical company focused on applying its expertise in dermatology and women’s health to other therapeutic areas, fell sharply after Treasurer Jim Chalmers indicated he would reject Cosette’s takeover bid.
Steadfast saw its shares decline following its CEO stepping aside pending an investigation. Origin Energy reported stable gas production but declining retail gas sales. Endeavour Group experienced a dip in retail sales at Dan Murphy’s and BWS, while Humm reported a slump in loan originations due to technology issues and stricter credit approvals.
