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Gains in interest rate-sensitive stocks cause ASX to close 0.29% higher

PUBLISHED

2023-11-29

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Australian shares rose on Wednesday, primarily driven by gains in interest rate-sensitive stocks, responding to signs of progress in the Reserve Bank's efforts to combat inflation. The Consumer Price Index growth in October eased to 4.9% annually, lower than analysts' consensus of a 5.2% rise, leading to rallies in real estate, tech, and consumer discretionary stocks, all closing more than 1% higher. Conversely, energy stocks underperformed, down 0.8%, as traders awaited the outcome of an OPEC+ meeting regarding potential crude output cuts for the next year, keeping Brent crude below $82 per barrel.

At the closing bell, the S&P/ASX 200 was 0.29 per cent higher at 7,053.30.

Futures

The Dow Jones futures are pointing to a rise of 56 points.

The S&P 500 futures are pointing to a rise of 7.25 points.

The Nasdaq futures are pointing to a rise of 29.75 points.

The SPI futures are up 13 points.

Best and worst performers

The best-performing sector was Information Technology, up 2.08 per cent. The worst-performing sector was Energy, down 0.76 per cent.

The best-performing large cap was Fisher & Paykel Healthcare Corporation (ASX:FPH), closing 7.87 per cent higher at $22.20. It was followed by shares in Evolution Mining (ASX:EVN) and Newmont Corporation (ASX:NEM).

The worst-performing large cap was QBE Insurance Group (ASX:QBE), closing 3.07 per cent lower at $15.17. It was followed by shares in Meridian Energy (ASX:MEZ) and Insurance Australia Group (ASX:IAG).

Asian markets

Japan's Nikkei has lost 0.13 per cent.

Hong Kong's Hang Seng has lost 1.75 per cent.

China's Shanghai Composite has gained 0.29 per cent.

Company news

Euro Manganese (TSX-V and ASX:EMN; OTCQX:EUMNF; Frankfurt:E06) has signed definitive agreements with Orion Resources Partners for US$100m in non-dilutive financing to advance the development of the Chvaletice Manganese Project in the Czech Republic. Dr Matthew James, President & CEO of Euro Manganese, commented, "This is a transformative transaction for Euro Manganese, providing a Funding Package that facilitates the best possible pathway to a final investment decision and representing a collaboration between Euro Manganese, Orion, and Stifel." Shares closed 40 per cent higher at 14 cents.

Elementos (ASX:ELT) has reported a maiden Zinc Mineral Resource Estimate at its Oropesa Tin Project in Spain. Elementos Managing Director Joe David said, "whilst tin remains the primary mineral of interest at Oropesa it is now confirmed that zinc will also be in consideration as a by-product stream for the company, delivering a more financially robust project with stronger environmental and mining benefits." Shares closed 3.16 per cent higher at 9.8 cents.

White Cliff Minerals (ASX:WCN) has confirmed that their 100% owned Lake Johnston South Lithium project in WA is highly prospective for spodumene bearing pegmatites. Commenting on the exploration results, White Cliff Chairman Roderick McIllree said: "Given the several large discoveries by the adjacent TG Metals (TG6.ASX), and Rio Tinto Exploration and Charger Metals (CHR.ASX) commercially significant transactions, we have enormous confidence in the potential value of the Project." Shares closed flat at 1.1 cents. 

Commodities and the dollar

Gold is trading at US$2,049.40 an ounce.

Iron ore is 3 per cent lower at US$129.45 a tonne.

Iron ore futures are pointing to a 0.2 per cent fall.

Light crude is trading $0.15 higher at US$76.56 a barrel.

One Australian dollar is buying 66.43 US cents.

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