Aussie shares up despite mixed signals from Iran talks
The Australian stock market continues to rally on optimism about a possible peace deal between the US and Iran, despite continued disagreement on key issues.
The S&P/ASX200 rose 41.4 points, or 0.48 percent, to 8,663.1 points at midday on Friday, while the broader All Ordinaries index rose 45.2 points, or 0.51 percent, to 8,886 points.
“Iran has suggested that the latest US proposal ‘narrows the differences to some extent’ between the two sides,” Westpac economist Mantas Vanagas said.
“But the two countries still appear to be drifting apart on two key issues, Iran’s nuclear ambitions and the reopening of the Strait of Hormuz.”
ASX-listed miners did some heavy lifting heading into the weekend, with supplies rising 1.4 per cent thanks to strong leadership from BHP and Rio Tinto.
A day after Arafura Rare Earths gave the green light to its flagship ore-to-oxide Nolans Project in the NT, its trading ground to a halt as it launched a $350 million corporate placement to support the effort.
Gina Rinehart’s Hancock Prospecting has already committed $85 million to the placement, which will take Hancock’s stake in the mining to 17.5 percent.
Consumer stocks were mixed; While basic food products increased by 0.6 percent thanks to the strong performances of Woolworths, Bega and Elders, a 0.1 percent improvement was recorded in cyclical products.
Mexican-themed fast food chain Guzman Y Gomez rose more than 14 percent after halting its U.S. expansion after failing to meet financial targets.
Ainsworth Game Technology rose 3.8 percent despite reporting a decrease in revenue due to increased competition in the U.S. market and negative economic factors.
Financials rose 0.4 percent, led by the big four banks and investment firms, as major insurance companies were sold.
Energy stocks fell as Brent oil fell below $105 per barrel.
Woodside fell 0.9 percent to $31.55, while Santos turned the other way and coal miners fell overall.
Falling uranium stocks continued to rebound from recent weakness as sentiment improved and microchip maker Nvidia posted a new first-quarter sales record, boosted by its global data center build.
ASX-listed technology shares gained 0.2 per cent while Appen rose 10 per cent after reaffirming its revenue expectation range of $270 million to $300 million.
Utilities, communications and real estate stocks underperformed the stock market, falling between 0.8 and 1.2 percent, respectively.
Gold miners were mixed but generally higher as the precious metal rose to US$4,527 ($6,340) per ounce. Northern Star, on the other hand, fell for the second day after the departure of chief executive Stuart Tonkin was announced.
The Australian dollar was buying 71.38 US cents at 71.13 US cents at 5pm on Thursday.
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