Local shares have added further to Wednesday’s gains with the ASX 200 lifting 67pts or 0.92% to 7,376 around lunch. The index has now fully recouped the losses over the first two days of the week with the impressive gains following similar advances on US markets.
Improvements have been broad locally with nearly every sector making gains. Energy and materials are again leading the charge higher while financials also provide support to the broader market. The only sector to decline so far is healthcare.
While the major miners are overall making the biggest impact to the ASX 200, with BHP Group (BHP) adding 2.9% and 13pts to the benchmark index. There has been plenty of action among the materials sector today with plenty of quarterly activity or production updates being provided to the market and it has mostly been positive reactions from investors.
Lithium miners Galaxy Resources (GXY) and Orocobre (ORE) are two standouts. ORE is jumping 11.5% on its
quarterly report as an uplift in lithium ore prices and improved production numbers at its Olaroz facility in Argentina. GXY is rising 10.5% also on a strong update with record production of lithium concentrate at its Australian operations. The companies are looking to complete a merger by end of August.
Other mining and energy companies to report quarterly numbers include Newcrest Mining (NCM) which is down 0.1% and Santos (STO) which is 2.9% higher.
Rare earths miner Lynas (LYC) is adding 8% after announcing it has received a $14.8 million grant from the Australian Government for its Modern Manufacturing Initiative. The grant will “enable LYC to commercialise an industry-first Rare Earth carbonate refining process.”
The news hasn’t been so good for ZipCo (Z1P) with its share price falling 6.2% on the back of a business update. The buy-now pay-later provider still announced record quarterly transaction volumes and revenue for the three months to June 30. Revenue was $129.9 million for the quarter while transaction volumes amassed $1.8 billion.
The Aussie dollar is now back to 73.54 US cents having fallen below 73 US cents yesterday.
Published by CommSec