The Australian sharemarket surged to a three-month high on Tuesday, buoyed by rising precious metals prices as investors returned from the long weekend. The S&P/ASX 200 Index jumped 97.1 points, or 1.1 per cent, to 8957.2, recovering from last week’s 0.5 per cent loss. Ten of the eleven sectors experienced gains, with materials and energy leading the way. BHP Group climbed 3 per cent, reclaiming its position as Australia’s most valuable listed company after 18 months, surpassing Commonwealth Bank, which saw a modest 0.5 per cent increase.
Miners were at the forefront of the rally as gold and silver reached new record highs. Bullion prices hit $US5100 an ounce, while silver topped $US114 an ounce. Consequently, Horizon Minerals rose 6.7 per cent, Pantoro gained 1.2 per cent, and Newmont increased by 0.8 per cent. Among silver miners, Silver Mines surged 6.3 per cent, Sun Silver rallied 2.2 per cent, and Investigator Silver advanced 3.3 per cent. Rio Tinto also gained 2.2 per cent, while Capstone Copper was the top performer on the index, soaring 8 per cent.
Fortescue Metals rose 0.7 per cent after acquiring all remaining shares of Alta Copper at $C1.40 ($1.47) per share, expanding its presence in the copper sector. Metcash, a wholesaler company that provides marketing and distribution services to independent retailers in Australia, rallied 0.9 per cent following the appointment of Bruce Sabatta as the new chief executive of its food service and convenience business, starting next month. Santos increased 3.2 per cent following the shipment of its first liquefied natural gas cargo from the Barossa project in the Timor Sea. Cyclopharm, a health tech group that specialises in lung imaging technology, soared 12 per cent after its lung imaging technology received a major endorsement from America’s top medical professionals.
The Australian dollar climbed to US69.40¢, nearing its strongest level in three years, fuelled by growing expectations of a Reserve Bank cash rate increase next month. Conversely, family app Life360 was among the biggest laggards, declining by 8 per cent, and shares in DroneShield plummeted 6 per cent despite doubling revenue in the December quarter compared to the previous year. Insurer group AUB was placed on a trading halt after launching a $400 million institutional placement to finance a UK acquisition.
