ASX closes 1.4% higher despite wages climbing 1.3%

Market Reports

by Peter Milios

The Australian sharemarket reached an eight-week high on Wednesday, driven by optimism stemming from a US inflation report indicating the possibility of a peak in interest rates in the United States. The S&P/ASX 200 index rose by 1.4%, closing at 7105.9 points, while the All Ordinaries also gained 1.5%, despite local data showing a record rate of wage growth in the third quarter.

Australia's wage price index increased by 1.3% in the third quarter, in line with analysts' predictions, resulting in a 4% annual growth rate, the highest quarterly growth in the index's 26-year history, according to the Australian Bureau of Statistics.

Futures

The Dow Jones futures are pointing to a rise of 50 points.

The S&P 500 futures are pointing to a rise of 10.25 points.

The Nasdaq futures are pointing to a rise of 40.75 points.

The SPI futures are up 103 points.

Best and worst performers

The best-performing sector was REITs, up 4.77 per cent. The worst-performing sector was Energy, down 0.73 per cent.

The best-performing large cap was SEEK (ASX:SEK), closing 6 per cent higher at $23.31. It was followed by shares in WiseTech Global (ASX:WTC) and Allkem (ASX:AKE).

The worst-performing large cap was Computershare (ASX:CPU), closing 5.49 per cent lower at $23.42. It was followed by shares in QBE Insurance Group (ASX:QBE) and Steadfast Group (ASX:SDF).

Asian markets

Japan's Nikkei has gained 2.26 per cent.

Hong Kong's Hang Seng has gained 2.73 per cent.

China's Shanghai Composite has gained 2.37 per cent.

Company news

Atlantic Lithium (AIM:ALL, ASX:A11, OTCQX ALLIF) has rejected a non-binding indicative offer from Assore International Holdings to acquire the rest of the shares it does not already own for A$0.63. In response, Neil Herbert, Executive Chairman of Atlantic Lithium, said, “Assore, a major African mining company, has been a leading investor and key contributor to the Company’s success since its listing in London in 2015. We look forward to maintaining our strong relationship with Assore as we progress Ewoyaa towards production.” Neil Herbert Atlantic Lithium Executive Chairman is on this Fridays webinar as mentioned you can register via the SC or FNN website. Shares closed 46.75 per cent higher at 56.5 cents.

Findi (ASX:FND) has raised $37.6 million ahead of its TSI India IPO, from leading Indian investment firm Piramal Alternatives. The funds will be allocated with respect to working capital and capital expenditure. Commenting on the news, Findi Chairman Mr Nicholas Smedley said, “Piramal undertook extensive due diligence on TSI India before they made their investment which is a great endorsement for both our business plan and the sector outlook for Findi as a whole.” Shares closed 54.72 per cent higher at $1.23.

Odessa Minerals (ASX:ODE) announced that their assay results have defined standout drilling targets for Lithium in Pegmatites its Yinnetharra Lithium Project. In response, David Lenigas, Executive Director of Odessa, said, “Odessa’s exploration team have processed thousands of rock chip and soil samples from Lockier Range over the past 6 months and the results have now defined some exceptional lithium rich areas that will be targeted with our maiden drilling programme.” Shares closed 25 per cent higher at 1 cent.

Jindalee Resources (ASX:JRL) announced exceptional metallurgical lithium results from its 100% owned, McDermitt Lithium Project located in Oregon, USA. The lithium grade will now increase 57% higher than the average Mineral Resource grade. Shares closed 8 per cent higher $1.08.

Commodities and the dollar

Gold is trading at US$1,970.60 an ounce.

Iron ore is 0.3 per cent higher at US$130.20 a tonne.

Iron ore futures are pointing to a 2.75 per cent rise.

Light crude is trading $0.24 higher at US$78.50 a barrel.

One Australian dollar is buying 64.98 US cents.

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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