Another strong lead from Wall Street overnight, helped the Australian sharemarket extend its gains to a second straight day, with the ASX 200 surging 116.4 points or 1.74 per cent, to 6815.7. The Technology sector (up 3.85 per cent) rose the most, while Consumer Staples (down 0.04 per cent) was the only sector to finish with a decline. Oil producers Woodside Petroleum (WDS), Santos (STO) and Beach Energy (BPT) all improved, helping the
broader Energy sector lift for the seventh straight day – its longest winning streak since March this year. The rally comes after oil prices notched their third straight gain overnight.
Link Administration Holdings (LNK) was amongst some of the best performers in the market today, after it rose by 6.7 per cent (best day in over 2 months). This follows the administration services company receiving a third proposal from Canadian software company Dye & Durham, which aims to purchase LNK’s Corporate Markets business and all of the BCM business for US$1.27 billion.
Fortescue Metals (FMG) is collaborating with Belgium-based energy exploration and development company, Tree Energy Solutions, to ‘accelerate the development’ of a green hydrogen & green energy import facility in Germany. FMG will invest US$127m, with ‘first delivery of green hydrogen’ anticipated in 2026. FMG shares rose by 2.4 per cent – its fifth straight rally.
Gold miner De Grey Mining (DEG) entered into a trading halt after announcing a $130 million equity raise, and a $20 million share purchase plan, at an offer price of $1 per share (8.3 per cent discount to the last closing share price). The proceeds from the raise will help the company ‘advance its exploration initiatives’, ‘complete its Definitive Feasibility Study’, and fund its ‘corporate costs and general working capital’.
ASIC has launched legal action against Latitude (LFS) & Harvey Norman (HVN) ‘over the promotion of interest free payment methods’. Companies are yet to make an announcement to the market. Both stocks rose despite concerns, amid a broader market rally.
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In economic news, the Reserve Bank of New Zealand (RBNZ) lifted its official cash rate by 50 basis points to a 7½-year high of 3.5 per cent. This is the RBNZ’s fifth straight 50 basis point rate hike and was in-line with market expectations.
Today, 3.8bn shares were traded, worth $9.6bn. 884 stocks rose, 494 fell & 384 finished unchanged.
Originally published by Divik Nigam – (Author), CommSec
