The Australian sharemarket recovered from earlier losses on Wednesday, driven by renewed investor interest in the mining sector following a rebound in metal prices. By 2.05pm AEDT, the S&P/ASX 200 index had risen 56.10 points, or 0.6 per cent, to 8913.20. Gains were concentrated, with four of the eleven sectors advancing, led by materials and energy.
Gold prices saw a 2.1 per cent increase to $US5049 an ounce, continuing momentum from the previous session’s 6 per cent rally. Copper prices also experienced a significant recovery, jumping more than 4 per cent to $US13,478 on the London Metal Exchange. This surge positively impacted gold miners, with Northern Star Resources soaring 5.7 per cent, Regis Resources adding 4 per cent, and Newmont rising 3.3 per cent. BHP, a leading global resources company, benefited from the rally, returning to the top of the ASX 200 by market value, with shares up 3.9 per cent to a 52-week high. Rio Tinto also saw gains, adding 3.5 per cent.
Conversely, the technology sector experienced a sharp downturn, falling 7.7 per cent following an overnight sell-off in US software stocks. Concerns that artificial intelligence could negatively impact demand for existing products weighed heavily on sentiment. Xero, a software company providing cloud-based accounting software for small and medium-sized businesses, plummeted 13.1 per cent to a three-year low, while WiseTech Global shed 8.2 per cent.
In corporate news, Amcor, a global packaging company, rose 4.3 per cent after reaffirming its full-year guidance. The company reported that synergies from its acquisition of US company Berry reached $US55 million, at the upper end of expectations. Synlait Milk, on the other hand, faced challenges, losing 13.5 per cent after announcing an expected first-half net loss of up to $NZ82 million due to manufacturing issues and margin pressures.
