The Australian sharemarket climbed back towards its record high on Monday led by a rebound in the mining sector and a strong performance on Wall Street.
The benchmark S&P/ASX 200 Index rose 0.7 per cent, or by 61.2 points, to 8344.4 at the closing bell as 10 out of the 11 sectors traded higher. The gauge is just 11.5 points shy from a high of 8355.9.
The All Ordinaries also added 0.6 per cent with investor sentiment lifted by robust US earnings that helped the S&P 500 notch its 47th record.
‘An everything rally’
The materials sector was the best performer on the ASX, as shares tracked a rebound in the iron ore price and gold topping $US2700 an ounce for the first time.
BHP and Rio Tinto added 1.4 per cent to $42.64 and 1.9 per cent to $119.81, respectively as iron ore futures in Singapore rose 1.3 per cent to $US103 a tonne on the November contract.
Gold producers were well bid with West African Resources surging 7.2 per cent to $1.71 and De Grey Mining jumping 4 per cent to $1.45.
Tribeca Investment Partners portfolio manager Jun Bei Liu noted Monday’s advance was “broad”.
“The financials are running higher and materials,” she said. “It’s an everything rally aside from a couple of companies’ specific things like Nick Scali reporting weaker margins and WiseTech with its issues with its CEO,” Ms Liu added.
Bank stocks climbed with Commonwealth Bank finishing up 1.2 per cent to $144.45. And energy stocks tracked a higher crude oil price at $US74 a barrel after falling almost 8 per cent last week. Woodside Energy firmed 1.3 per cent to $24.95 and Santos 1.5 per cent to $7.
Stocks on the move
In corporate news, WiseTech plunged 14.6 per cent to $104.65 after the board said it was reviewing allegations against founder and chief executive Richard White by a sexual partner, which resulted in him paying her millions of dollars to settle the matter. WiseTech said it was seeking further information and taking external advice.
The billionaire founder also continued to sell down his stake in the tech company. In the latest round, he sold 351,038 shares at an average price of $131.22 apiece between October 11 and October 17, according to a director’s notice filed late on Friday.
The large cap dragged the wider information technology sector down more than 2 per cent.
Mineral Resources dived 13.8 per cent to $39.55 as the board said it had “full confidence” in managing director Chris Ellison. The statement follows an investigation by The Australian Financial Review that uncovered how he allegedly evaded tax for years. It has engaged external legal counsel to look into the matter and advise the board.
And Nick Scali fell 4.1 per cent to $14.50 after the furniture retailer issued a profit warning telling shareholders at its annual meeting in Sydney that gross margins have been crunched by rising shipping costs. In a trading update, the retailer forecast net profit for Australia and New Zealand to be in the range of $30 million to $33 million in the first half.