ASX closes 0.63% higher as AUD moves higher

Market Reports

by Peter Milios

The Australian dollar rebounded from a nine-month low on Monday, climbing to US64.27¢. This rise followed a week of flat performance, breaking a streak of five consecutive weeks of losses. The currency had previously hit its low point of US63.63¢ in mid-August due to China's weakening economic prospects and the interest rate gap between the US and Australia. China's announcement of modest stimulus measures aimed at boosting its struggling economy contributed to the Australian dollar's recovery. These measures included cutting the stamp duty on stock trading and planning the construction of affordable housing. These steps had a positive impact on risk assets such as the Australian dollar, equities, copper, and iron-ore prices, all of which ended the previous week on an upward trend. However, there are concerns about whether the market can sustain these gains. While some analysts predict a 4% increase in the Australian dollar to US67.4¢ by late October, investors are becoming impatient with what they perceive as China's slow and insufficient efforts to address its deepening property crisis.

At the closing bell, the S&P/ASX 200 was 0.63 per cent higher at 7,159.80.

Futures

The Dow Jones futures are pointing to a rise of 97 points.

The S&P 500 futures are pointing to a rise of 9 points.

The Nasdaq futures are pointing to a rise of 29.5 points.

The SPI futures are up 48 points.

Best and worst performers

The best-performing sector was Health Care, up 1.45 per cent. The worst-performing sector was Information Technology, down 0.74 per cent.

The best-performing large cap was Evolution Mining (ASX:EVN), closing 3.17 per cent higher at $3.58. It was followed by shares in Ampol (ASX:ALD) and Northern Star Resources (ASX:NST).

The worst-performing large cap was Fortescue Metals Group (ASX:FMG), closing 5.06 per cent lower at $19.87. It was followed by shares in Pilbara Minerals (ASX:PLS) and NEXTDC (ASX:NXT).

Asian markets

Japan's Nikkei has gained 1.73 per cent.

Hong Kong's Hang Seng has gained 1.39 per cent.

China's Shanghai Composite has gained 0.94 per cent.

Company news

Tamboran Resources (ASX:TBN) has signed two non-binding Letters of Intent with Alinta Energy and ENGIE. Managing Director and CEO, Joel Riddle, said: “We continue to experience significant interest in purchasing low-reservoir CO2 gas from our Beetaloo Basin assets delivered into the East Coast over the long term.” Shares closed 3.7 per cent higher at 14 cents.

Talon Energy (ASX:TPD) refers to today's announcement by Strike Energy (ASX:STX) that its offer to acquire each Talon share by way of a scheme of arrangement is its “Best and Final Offer, in the absence of a superior proposal." The Talon directors conclude that the Scheme is in the best interests of Talon shareholders. Shares closed 5.13 per cent lower at 18.5 cents.

Sarytogan Graphite (ASX:SGA) reported that thermal purification has now far exceeded battery anode material grade for their graphite deposit in Central Kazakhstan. In response, Managing Director, Sean Gregory commented: “We are thrilled with this 99.99% result that shoots the lights out when it comes to graphite purity by far exceeding the 99.95% specification for battery anode material.” Shares closed 23 per cent higher at 23 cents.

Commodities and the dollar

Gold is trading at US$1,945.20 an ounce.

Iron ore is 1.8 per cent higher at US$116.60 a tonne.

Iron ore futures are pointing to a 1.4 per cent fall.

Light crude is trading $0.24 higher at US$80.07 a barrel.

Peter Milios

Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.

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