ASX Nears Three-Month High; Treasury Wine Soars on US Settlement
The Australian sharemarket opened higher on Tuesday, extending its biggest one-day gain since April last year, as miners were supported by rising silver and gold prices.
The S&P/ASX 200 Index added 52.80 points, or 0.6% to 8922.90 at 10.10am AEDT, with 10 of the 11 sectors stronger. The benchmark is now closing in on a three-month high as the Australian dollar rose 1% to US70.98¢ on Monday, the highest level in two years, buoyed by a falling US currency and a global rally in equities.
Materials were the strongest as gold rose 0.3% to $US5074.30 at the open, and silver by 0.6% to $US83.89. Northern Star rose 1.8%, Newmont 2.3% and South32 2.6%.
Uranium miners were back after heavy selling last week on fears that AI may not spark a boom in nuclear power. Paladin rose 3%, Deep Yellow 5.9% and Nexgen Energy (Canada) 3.8%.
Financials were flat as Commonwealth Bank firmed 0.1% ahead of its half-year results on Wednesday, while Westpac fell 0.4% as it told investors that it chief information officer Scott Collary would retire after nearly three years in the role. National Australia Bank rose 0.2% and ANZ drifted 0.2%.
Macquarie Group firmed 3.5% after it reported higher profits across its four business divisions for the December quarter, as the asset management and investment banking giant signalled its flagship commodities and global markets unit would post improved annual income.
Childcare operator G8 Education plunged 14.3% after flagging a $350 million non-cash goodwill impairment, scrapping its final dividend and pausing its on-market share buyback amid weaker occupancy and rising costs.
Treasury Wine Estates will buy back inventory from its former Californian distributor after it resolved a dispute that stemmed from Republic National Distribution Company shutting down its operations in September. Shares rallied 7.2%.
Region Group gained 0.7% as it upgraded its earnings outlook for the 2026 fiscal year, lifting forecast funds from operations to 16.0¢ per security from 15.9¢, implying 3.2% growth on FY25.
DroneShield jumped 4.3% as it appointed former Thales Australia and Knorr-Bremse executive Michael Powell as chief operating officer as the counter-drone group ramps up global growth.
Amotiv slumped 0.5% after it reported 3.3% revenue growth to $520.5 million for the half year, while statutory net profit jumped 39.4% to $46 million due to lower significant items.
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