The Australian sharemarket reached a new milestone on Wednesday, surpassing 8800 for the first time. The S&P/ASX 200 rallied 0.6 per cent to 8823.30 at 2.10pm AEST, after hitting an intraday record of 8824 earlier in the session. Gains were broad-based, led by the materials sector, as weaker-than-expected US economic data fuelled hopes of American interest rate cuts and boosted gold prices. Ten of the eleven sectors advanced, with utilities being the only sector to decline.
Stocks shrugged off a weak lead from Wall Street following the release of disappointing US services data. EToro market analyst Farhan Badami noted that investors are increasingly betting on earlier interest rate relief due to easing consumer prices, injecting confidence into the stock market. According to Badami, this rally indicates a belief that the tightening cycle has ended, which is encouraging growth and benefiting smaller-cap stocks as lower interest rates alleviate debt pressures.
Gold miners extended their gains, with the price of the precious metal approaching $US3400 an ounce amid expectations of a US Federal Reserve rate cut next month. Newmont rallied 2.3 per cent, and Northern Star rose by 4.9 per cent. West African Resources soared 6.1 per cent after revising its forecasts. Energy also saw gains, supported by a 0.7 per cent increase in Brent crude to $US68.12 per barrel, driven by concerns over potential supply disruptions. Woodside lifted 1.2 per cent, and Santos by 0.5 per cent. REA Group, which operates real estate websites, soared 6.2 per cent after announcing a record dividend of $1.38 a share amid a double-digit jump in revenue and earnings. News Corp, a global media and information services company, rose 6.4 per cent to a 52-week high after reporting strong revenue and earnings growth.
Other notable movements included Lindian Resources, which surged 38.3 per cent following a long-term supply agreement with Iluka for rare earths concentrate. Iluka itself was up 0.8 per cent. Pinnacle Investment Management, a $5.2 billion investment firm, rallied 8.4 per cent after reporting a 49 per cent jump in full-year net profit to $134.4 million, aligning with market estimates.
