Longest winning streak in two months: ASX closes 0.19% higher

Market Reports

by Peter Milios

The Australian sharemarket experienced its longest winning streak in over two months as a result of interest rate cuts by China to revive its struggling economy. These rate cuts helped offset the impact of a stronger-than-expected jobs report in Australia.

At the closing bell, the S&P/ASX 200 was 0.19 per cent higher at 7,175.30.

The tech and financial sectors led the gains, while healthcare and utilities performed poorly. According to data from the Australian Bureau of Statistics, the unemployment rate dropped by 0.1 per cent to 3.6 per cent, with the addition of 75,900 jobs in May, exceeding the consensus estimate of 17,500 new jobs.


The Dow Jones futures are pointing to a fall of 15 points.
The S&P 500 futures are pointing to a fall of 1.5 points.
The Nasdaq futures are pointing to a fall of 19.25 points.
The SPI futures are up 11 points.

Best and worst performers

The best-performing sector was Information Technology, up 0.96 per cent. The worst-performing sector was Health Care, down 1.97 per cent.

The best-performing large cap was Insurance Australia Group (ASX:IAG), closing 4.59 per cent higher at $5.47. It was followed by shares in Aurizon Holdings (ASX:AZJ) and Fortescue Metals Group (ASX:FMG).

The worst-performing large cap was Lynas Rare Earths (ASX:LYC), closing 6.51 per cent lower at $7.18. It was followed by shares in Mercury NZ (ASX:MCY) and Meridian Energy (ASX:MEZ).

Asian markets

Japan's Nikkei has lost 0.05 per cent.
Hong Kong's Hang Seng has gained 1.44 per cent.
China's Shanghai Composite has gained 0.39 per cent.

Company news

Magnis Energy Technologies (ASX:MNS; OTCQX:MNSEF; FSE:U1P) announced that the lithium-ion batteries produced at the iM3NY Battery Plant have received UN38.3 certification. MD Hoshi Daruwalla commented: “Our batteries have met the strict safety requirements developed by the UN for transportation.” Shares closed flat at 17.5 cents.

GreenTech Metals (ASX:GRE) has confirmed the presence of spodumene-bearing pegmatites on the company’s 100 per cent owned Ruth Well Project in WA. Executive Director Thomas Reddicliffe commented: “The spodumene bearing pegmatites occur in a zone up to 200m wide which also includes barren pegmatites.” Shares closed 214 per cent higher at 33 cents.

QX Resources (ASX:QXR) announced that diamond drilling had intercepted massive sulphide mineralisation from their deposit in Northern Sweden, held by Bayrock Resources, in which QXR has a significant holding. Shares closed 6.06 per cent higher at 3.5 cents.

Lake Resources (ASX:LKE) has announced that their Measured and Indicated resources have increased from 2.19 to 2.93 million tonnes of lithium carbonate equivalent at their Kachi Project. Michael Gabora at Lake Resources, commented, “The activities started in March of last year have led to a significantly improved understanding of both the spatial and vertical extent of lithium brine.” Shares closed 0.53 per cent higher at 47.3 cents.

Commodities and the dollar

Gold is trading at US$1,947.90 an ounce.
Iron ore is 1.2 per cent higher at US$114.30 a tonne.
Iron ore futures are pointing to a 1.18 per cent rise.
Light crude is trading $0.39 higher at US$68.66 a barrel.
One Australian dollar is buying 68.22 US cents.

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