The materials and energy sectors were the top movers on the ASX on Tuesday (14 January), with sentiment boosted by rising oil prices and strong imports by China.
The S&P/ASX 200 closed up 39.10 points, or 0.48%, at 8,231 points. The index has lost 0.65% over the past five days, but has gained 9.77% over the past year.
Seven of the 11 sectors gained ground. Materials climbed 1.44%, energy rose 1.21% and industrials edged up 0.28%. The materials sector has rallied nearly 4% over the past five trading days.
Base metals shifted higher on the back of China trade data released yesterday, while iron ore advanced after China’s Ministry of Commerce said it would vigorously boost consumption and stabilise foreign trade and investment in 2025.
“This is expected to come via the strengthening of a trade-in policy for consumer goods and greater promotion of China’s Belt and Road program,” ANZ says.
“Trade data was also supportive. Iron ore imports stayed at 100 million tonnes, as China’s recent stimulus measures boosted prospects for steel demand. Steel exports were also strong, rising 25.9% year over year to 9.73 million tonnes.”
Crude oil prices kept moving higher on concerns over US sanctions on Russia’s energy industry.
ANZ says the measures are the most aggressive the US has placed on Russia, targeting large exporters, insurance companies and oil tankers.
Canada, meanwhile, is preparing for US President-elect Donald Trump to introduce 25% tariffs, with no exemptions for oil, when he assumes office next week.
ANZ says oil prices were already moving higher amid signs of tightness in several markets and these latest developments could see Brent crude push well above its six-month high of US$81 ($131) a barrel.
ANZ-Roy Morgan Consumer Confidence data was released today and was virtually unchanged at 87.1.
While there were small increases in consumer confidence in New South Wales, Western Australia and South Australia, overall the index indicates a softness in buying intentions, which declined slightly.
At the larger end of the market, Whitehaven Coal (ASX:WHC) shifted up 6.61% to $6.45, uranium producer Boss Energy (ASX:BOE) increased 5.36% to $2.75 and gold miner Vault Minerals (ASX:VAU) rose 4.41% to $0.36.
West African Resources (ASX:WAF), however, slipped 2.49% to $1.57.
The small cap explorer were led by Newpeak Metals (ASX:NPM), which climbed nearly 31% to $0.02 after Lakes Blue Energy (ASX:LKO), in which Newpeak holds a 17% stake, received a final $3.5 million payment from the sale of its 49% interest in Victorian Petroleum Exploration Permit 169.
Pioneer Lithium (ASX:PLN) advanced nearly 26% to $0.22, Latrobe Magnesium (ASX:LMG) rose 25% to $0.02, Mamba Exploration (ASX:M24) rallied 20% to $0.02 and Narryer Metals (ASX:NYM) ended the day up 19% at $0.06.
The S&P/ASX200 is Australia’s leading share market index and contains the top 200 ASX-listed companies in terms of market capitalisation, and accounts for about 80% of the country’s equity market. The index is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation.
It is recognised as the institutional investable benchmark in the country.
Write to Angela East at Mining.com.au
Images: ASX & iStock
