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FIVE at FIVE AU: ASX gains as Tech rallies

Published 07/01/2025, 04:03 pm
Updated 07/01/2025, 04:30 pm
© Reuters.  FIVE at FIVE AU: ASX gains as Tech rallies
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The ASX 200 index ended the day 0.27% higher at 8,279.8 points for its fourth consecutive day of gains. The Tech sector was the standout as the All Technology Index lifted 1.5%, while Telcos also outperformed (+1.2%).

Meanwhile, the Materials sector continued its decline, losing 0.7% and bringing the sector’s losses to almost 6% over the past month. Commodity price falls overnight weighed on the major miners and oil producers.

Nvidia unveils new chips

The Tech sector’s boost came after Nvidia chief executive Jensen Huang unveiled a new generation of chips at CES 2025, the world’s biggest consumer electronics show.

The new chips provide the computing power needed to fuel the next phase of the artificial intelligence revolution, which Huang describes as a “multi-trillion-dollar opportunity”.

Huang discussed emerging new scaling laws that pave the way for AI to “think” and train itself.

“Machine learning has changed how every application is going to be built, how computing will be done, and the possibilities, beyond,” he said.

“Every single enterprise in every single industry has been activated to start working on AI. Well, the thing that we did was we realised that the llama models really could be better fine-tuned for enterprise use, and so we fine-tune them using our expertise and our capabilities.”

Huang said software coding was the next giant AI application, and with 30 million software engineers globally, it represented a “multi-trillion dollar opportunity”.

Banks overvalued: Morgan Stanley (NYSE:NYSE:MS)

Australia’s major banks delivered an impressive 33% return over 2024, far exceeding the ASX 200’s 11.4%. Westpac led the sector with a 48.4% gain, followed by Commonwealth Bank at 41.2%, National Australia Bank at 26.4% and ANZ at 16.5%.

Despite this strong annual performance, Morgan Stanley (NYSE:MS) suggests current share prices are not justified.

December saw a significant retreat for banks amid a broader sector pullback, with the banks returning an average of -5%, compared to the ASX 200’s -3.2%.

Small cap movers

Among the movers in the small cap sector today were Discovery Alaska Ltd (ASX:DAF, OTC:DRVYF), which was as much as 12.5% higher to $0.018, European Lithium Ltd (ASX:ASX:EUR, OTCQB:EULIF) reached $0.045, a 9.76% increase on the previous close, Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) was up 9.52% to a daily high of $0.023, Polymetals Resources Ltd (ASX:POL) lifted by 8.97% to $0.85 and Yandal Resources Ltd (ASX:YRL) moved up by 8.57% to $0.19.

Other movers were Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF), up 8.35% to $0.026, Magnetite Mines Ltd (ASX:MGT) increased 8% to $0.135, AuMega Metals Ltd hit $0.043, a lift of 7.5% on the previous close, FireFly Metals Ltd (ASX:FFM) was 4.91% higher to $0.897, Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML) reached $0.79, a rise of 3.95% and Ora Banda Mining Ltd (ASX:OBM, OTC:ESGFF) moved up by 2.39% to a daily high of $0.645.

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