The Australian sharemarket continued its upward momentum, extending Monday’s rally as mining stocks surged alongside rising silver and gold prices. Investor interest also returned to uranium producers. The S&P/ASX 200 Index climbed 52.80 points, or 0.6 per cent, to 8922.9 by mid-morning, nearing a three-month high, with ten of the eleven sectors trading positively, led by the materials sector.
The Australian dollar experienced a significant boost, rising 1 per cent to US70.98¢, its highest level in two years. This increase was driven by a weakening US currency and a global rally in equities. On the ASX, Northern Star and Newmont saw gains of 1.8 per cent and 2.3 per cent, respectively, as gold prices climbed above $US5000 an ounce. South32, a company with silver operations, added 2.6 per cent as silver prices increased to $US83.89.
Among individual stocks, Macquarie Group rose 3.5 per cent after reporting higher profits across its business divisions for the December quarter, with its commodities and global markets unit expecting improved annual income. Treasury Wine Estates jumped 7 per cent following the resolution of a long-standing dispute in the US, involving a buyback of inventory from its former Californian distributor. However, childcare operator G8 Education experienced a sharp decline of 14.3 per cent after flagging a $350 million non-cash goodwill impairment and pausing its share buyback program due to weaker occupancy and rising costs.
Other movements included Region Group, which gained 0.7 per cent after upgrading its full-year earnings outlook, and DroneShield, an anti-drone technology provider, which rose 4.3 per cent after appointing Michael Powell as chief operating officer. Amotiv, a business solutions provider, slid 0.5 per cent, despite reporting revenue growth and a jump in net profit for the half-year. Commonwealth Bank is set to release its half-year results on Wednesday.
