Materials was the strongest performing sector on Thursday (19 September), as the ASX continued to notch new records.
The S&P/ASX 200 hit a new closing high of 8,191.90 points following a 49.80 point, or 0.61% rise, setting a new 100-day record and beating its most recent record closing price reached on Monday (16 September).
Six of the 11 sectors ended higher, with materials leading the charge on a 2.30% daily gain. The sector has advanced 3.81% over the past five days.
Utilities ended the day up 1.37% while energy climbed 1.10%.
The top performers were led by metal recycler Sims (ASX:SGM), which rose 12.42%. Oil and gas producer Strike Energy (ASX:STX) climbed 9.76%, while uranium miners Paladin Energy (ASX:PDN) and Deep Yellow (ASX:DYL) shifted up 8.10% and 6.06%, respectively.
Copper producer Sandfire Resources (ASX:SFR) and gold producer West African Resources (ASX:WAF) also made the top 10 gainers today.
The gold price fluctuated following news of a 0.5% rate cut by the US Federal Reserve. While spot prices edged back slightly the futures price flirted with US$2,600.
Shaokai Fan, global head of central banks and head of Asia-Pacific (ex-China) for the World Gold Council, says lower interest rates tend to be favourable for gold, as they reduce the opportunity cost of holding the asset.
“While the Fed rate cut is likely already priced into various asset classes due to its well-telegraphed nature, there remains potential for increased investor interest in gold,” Fan says.
“In particular, we may see further inflows into gold ETFs and retail gold products, especially in Western markets. This is consistent with the broader sentiment that lower rates enhance gold’s appeal as a safe haven, particularly as global regulatory standards evolve, and economic uncertainty persists.
“Investors seeking diversification and capital protection in these volatile times may increasingly turn to gold, buoyed by its stability and traditional role as a hedge.”
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 & Stock
