Digging deep: Mining stocks poised to end month on nine-year high
The local bourse is basically unchanged at midday, with the mining sector surging again and on track for its best week in nine years, but most other sectors lower.
At noon AEST on Friday, the benchmark S&P/ASX200 index was up 1.3 points, or 0.02 per cent, to 8,205.0 , while the broader All Ordinaries was up five points, or 0.06 per cent, to 8,467.8
With a few hours of trading left, the ASX200 was on track to finish the week basically flat, to finish the month up 1.4 per cent and the September quarter up 5.7 per cent.
Overnight commodity metals extended their gains following China this week announcing two massive stimulus measures, while gold hit a fresh all-time high and Brent crude sunk to a two-week low.
The mining sector was up 2.5 per cent on the day and 9.1 per cent on the week, on track for its best week since a 10.3 per cent gain in October 2015.
BHP was up 3.0 per cent, Fortescue had gained 4.5 per cent, Rio Tinto had added 3.4 per cent and Mineral Resources had surged 10.6 per cent.
The tech sector was also up, by 0.2 per cent, but the AXSX’s nine other sectors were in the red.
The heavyweight financial sector was down 0.7 per cent, with all of the big four banks losing ground.
NAB and Westpac had both dropped 1.5 per cent, ANZ had fallen 1.1 per cent and CBA had dipped 0.2 per cent.
Elsewhere, Star Entertainment had plunged 42.8 per cent to an all-time low 25.75c as shares in the troubled casino company resumed trading after being frozen for a month.
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Star revealed on Thursday it had plans to borrow up to $200 million at a 13.5 per cent interest rate to stay afloat, and that it had operated at a loss in July and August as high rollers stayed away from its private rooms.
Endeavour Group was down 3.8 per cent as the Dan Murphy’s and BWS owner announced that chief executive Steve Donohue would step down, once his successor had been found.
In the energy sector, Woodside was down 1.7 per cent and Santos had fallen 1.6 per cent as Brent crude fell to $US71 a barrel amid rumours that Saudi Arabia was set to increase output.
Back in the mining sector, goldminer Evolution had climbed 2.6 per cent but Newmont was down 0.4 per cent and most mid-tier goldminers were in the red even as the yellow metal hit an all-time high of $US2,684 an ounce overnight.
The Australian dollar was buying 68.76 US cents, from 68.67 US cents at Thursday’s ASX close.
