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ASX close 0.56% at mining and energy stocks outperform

PUBLISHED

2023-09-04

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At the closing bell, the S&P/ASX 200 was 0.56 per cent higher at 7,318.80, driven by strong performance in mining and energy stocks. This surge was attributed to positive sentiments regarding China, as its authorities implemented measures to stimulate housing demand. The Reserve Bank of Australia is expected to maintain the cash rate at 4.10% for the third consecutive month and signal its preparedness to raise rates further in order to counter inflationary pressures.

Futures

The Dow Jones futures are pointing to a rise of 10 points.

The S&P 500 futures are pointing to a rise of 2.75 points.

The Nasdaq futures are pointing to a rise of 26.75 points.

The SPI futures are up 54 points.

Best and worst performers

The best-performing sector was Materials, up 1.95 per cent. The worst-performing sector was Consumer Staples, down 0.63 per cent.

The best-performing large cap was Liontown Resources (ASX:LTR), closing 8.78 per cent higher at $2.85. It was followed by shares in South32 (ASX:S32) and Meridian Energy (ASX:MEZ).

The worst-performing large cap was Ramsay Health Care (ASX:RHC), closing 2.97 per cent lower at $49.72. It was followed by shares in Qantas Airways (ASX:QAN) and Boral (ASX:BLD).

Asian markets

Japan's Nikkei has gained 0.70 per cent.

Hong Kong's Hang Seng has gained 2.51 per cent.

China's Shanghai Composite has gained 1.22 per cent.

Company news

Liontown Resources (ASX:LTR) announced that it has received a revised conditional and non-binding indicative proposal from Albemarle Corporation to acquire all of the ordinary shares outstanding in Liontown for $3.00 in cash per share via scheme of arrangement. Albemarle has advised that the Revised Indicative Proposal is its best and final proposal.

Rare earths player, ABx (ASX:ABX) is in a trading halt regarding a proposed capital raising that is material to the Company. The Company anticipates that the trading halt will be lifted on or before 6 September 2023 by provision of an announcement to the ASX with respect to the capital raising.

Emyria (ASX:EMD) has announced that they have secured $2M in firm bids from new and existing sophisticated investors. In conjunction with the Placement, Emyria will initiate a non-renounceable pro rata entitlement offer to raise approximately $3.1 million (before costs) at the same terms.

Commodities and the dollar

Gold is trading at US$1,972.20 an ounce.

Iron ore is flat at US$118.20 a tonne.

Iron ore futures are pointing to a 0.1 per cent fall.

Light crude is trading $0.10 lower at US$85.45 a barrel.

One Australian dollar is buying 64.71 US cents.

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