ASX Opens up as BHP Underpins Mining Rotation
The Australian sharemarket opened higher on Thursday as investors continued to rotate into mining stocks as precious metals furthered gains against a backdrop of geopolitical and supply uncertainty.
The S&P/ASX 200 Index was up by 46.7 points, or 0.5% to 8867.30 at 10.11am AEDT, with seven of the 11 sectors stronger.
Materials were the strongest as BHP rallied more 2% and South32 3%, with copper remaining around record highs in a move that reflects the growing scarcity in metals markets. Rio Tinto firmed 1.4% and gold giant Northern Star 1.4%.
Energy contributed to gains as Woodside lift 0.7% and Santos 0.8% as oil prices rose to the highest since October overnight before retreating slightly amid rising instability in Iran.
The major banks were mixed following losses on Wednesday as Commonwealth Bank fell 0.4%, but National Australia Bank added 0.2%, Westpac 0.3% and ANZ 0.4%.
Eureka Group was flat after it executed contracts to acquire Nagambie Lifestyle Park, a mixed-use residential community about 140km north of Melbourne, for $11 million.
Carma fell 0.5% as it delivered 244 retail units in December, lifting quarterly deliveries to 746 – an 18% increase from the 633 units in the three months to September and 29% higher than the same period a year earlier.
DroneShield retreated 1.5% as it failed to continue its strong start to the year after JPMorgan Chase & Co became a significant shareholder after its stake grew to 5.19%.
4DMedical had yet to resume trading as it secured $150 million in an institutional placement at $3.80 per share, supported by new global long-only investors and strong demand from existing shareholders.
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