The Australian sharemarket surged to a three-month high on Tuesday, buoyed by rising precious metal prices as investors shrugged off concerns about shifting US trade policies. The S&P/ASX 200 Index gained 85.3 points, or 1 per cent, to close at 8945.40, recovering from last week’s losses. Nine out of eleven sectors experienced gains, with materials and energy leading the way. BHP reclaimed its position as Australia’s most valuable listed company, rising 2.9 per cent and unseating the Commonwealth Bank, which saw a modest 0.6 per cent increase. BHP is a leading global resources company that extracts and processes minerals, oil, and gas from its operations primarily in Australia and the Americas.
Miners were at the forefront of the rally, driven by record-high prices for gold and silver. Horizon Minerals jumped nearly 8 per cent, Alkane Resources increased by 3.9 per cent, and Newmont rose by 1.8 per cent. Among silver miners, Investigator Silver and Silver Mines both advanced 8.3 per cent, while Sun Silver increased by 6 per cent. Rio Tinto gained 2.2 per cent, and Capstone Copper was the top performer on the index, soaring 8 per cent.
In the financial sector, all major banks were in positive territory, with Macquarie Group leading the gains at 2 per cent. National Australia Bank rose by 1.3 per cent. The Australian dollar climbed to US69.40¢, approaching a three-year high, fuelled by expectations of a Reserve Bank cash rate increase next month. Meanwhile, shares in DroneShield, a company specialising in drone security solutions, fell 6 per cent despite reporting a doubling of revenue in the December quarter compared to the previous year.
Other notable movements included Fortescue Metals, which rose 1.3 per cent after acquiring the remaining shares of Alta Copper. Metcash rallied 1.2 per cent following the appointment of Bruce Sabatta as the new chief executive of its food service and convenience business. Michael Hill International jumped 4 per cent after reporting stronger half-year profits, while Santos leapt 3.1 per cent on the successful shipment of its first liquefied natural gas cargo from the Barossa project. Health tech group Cyclopharm soared 18 per cent after its lung imaging technology received a significant endorsement.
