🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Australia shares start year on a high as commodities shine

Published 04/01/2021, 12:39 pm
Updated 04/01/2021, 12:42 pm
© Reuters.
AXJO
-
FMG
-
NCM
-
AXGD
-
AXMM
-
AXFJ
-
SSNC
-
LNK
-

* Trading volumes remain at a fraction of monthly average

* Link Administration drops as U.S. co withdraws takeover offer

* New Zealand's bourse closed for public holiday

By Soumyajit Saha

Jan 4 (Reuters) - Australian shares started 2021 on a positive note, lifted by mining stocks as upbeat commodity prices provided a glimmer of optimism for investors, while the rollout of coronavirus vaccines revived prospects of swift global economic revival.

The S&P/ASX 200 index .AXJO was up 0.94% at 6,648.9 points by 1240 GMT on Monday. The benchmark closed 1.4% lower on Thursday. Financial markets in Australia and New Zealand were closed for New Year's Day.

"Recent strength in commodity prices have helped the likes of Fortescue Metals Group, which is in turn lifting the broader benchmark ... gains among financials also seem to be helping," Steven Daghlian, market analyst with CommSec said.

Investors are still counting on central banks to keep money cheap while the rollout of coronavirus vaccines helps revive the global economy over time.

"There seems to be a bit of optimism at play at the start of the year, along with a strong lead from Wall Street ... though participants still have an eye on domestic coronavirus cases," Daghlian added.

Miners .AXMM rose more than 1%, with iron ore miner Fortescue Metals Group FMG.AX gaining 2.5%, supported by supply concerns and China's robust steel demand despite the coronavirus pandemic-led disruption.

Gold stocks .AXGD jumped 2.8%, with largest independent gold miner Newcrest Mining NCM.AX surging 2.5%.

Financials .AXFJ climbed, with the so-called "Big Four" banks advancing in the range of 1.3% to 1.6%.

Superannuation administrator Link Administration Holdings Ltd LNK.AX was the biggest loser in the benchmark index, as it fell up to 13.2% after U.S.-based SS&C Technology Holdings SSNC.O withdrew its offer to acquire the company. number of issues on the ASX that advanced were 890, while 561 declined. Trading occurred at a fraction of the 30-day average volume of 652.6 million shares.

New Zealand bourse was closed for a public holiday on Monday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.