Budget effect kicks in, ASX reaches 4-week high: Aus shares close 1.3% higher

Market Reports

by Michael Luu

The Australian stock market has defied early morning lows and gained momentum from last night’s big-spending federal budget announcement to close 1.3 per cent higher and mark the 3rd consecutive day of gains. In response to the government’s business-focused expenditure, optimistic sentiment across consumer stock and banking sectors has propelled the ASX into the 6000s territory for the first time in 4 weeks.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 74 points higher to finish at 6,036.

Futures market

Dow futures are suggesting a rise of 47 points.
S&P 500 futures are eyeing a lift of 5 points.
The Nasdaq futures are eyeing a gain of 16 points.
And the ASX200 futures are eyeing a 75-point rise tomorrow morning.

Company news

Rare earth explorer Greenland Minerals (ASX:GGG) has recently recorded favourable results from the company’s advanced flotation test work under the Kvanefjeld Rare Earth Project. The programme has been conducted in collaboration with Chinese rare earth specialists Shenghe Resources. The tests have indicated rare earth recoveries in mineral concentrate increased by 5 per cent to 85 per cent. Greenland Minerals (ASX:GGG) considers this to be an important milestone for the company in its quest to become a significant supplier of rare earth materials to the emerging clean energy industry. Shares in Greenland Minerals (ASX:GGG) closed 1.9 per cent higher at 27 cents.

Magellan Financial Group's (ASX:MFG) funds under management increased by 1.2 per cent to $102.1 billion through September

AGL (ASX:AGL) has confirmed that it expects earnings in a range of $560 million to $660 million in financial year 2021.

Investment bank UBS has maintained its buy rating of $3.55 on fruit and vegetable wholesaler Costa Group (ASX:CGC) on the back of the company’s improving balance sheet and stronger at-home consumption,

Best and worst performers of the day

The best performing sector was Financials, closing 2.2 per cent higher, while the only sector with losses was Materials, closed 0.1 per cent lower.

The best performing stock in the S&P/ASX 200 was Virgin Money UK (ASX:VUK), rising 6.3 per cent to close at $1.45. Shares in Eagers Automotive (ASX:APE) and Seven Group Holdings (ASX:SVW) followed higher.

The worst performing stock in the S&P/ASX 200 was Newcrest Mining (ASX:MCM), dropping 2.1 per cent to close at $30.40. Shares in Healius (ASX:HLS) and Resolute Mining (ASX:RSG) followed lower.

Asian markets

Mixed: Japan’s Nikkei has lost 0.2 per cent, Hong Kong’s Hang Seng has gained 0.6 per cent and the Shanghai Composite is closed.

Commodities and the dollar

Gold is trading at US$1,884 an ounce.
Light crude is US$0.72 lower at US$40.21 a barrel.
One Australian dollar is buying 71.24 US cents.