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FIVE at FIVE AU: ASX sees biggest gain in weeks

Published 10/10/2023, 04:05 pm
Updated 10/10/2023, 04:30 pm
© Reuters.  FIVE at FIVE AU: ASX sees biggest gain in weeks
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The ASX has enjoyed its biggest gain in weeks, climbing 1% with all sectors in the green.

The S&P/ASX200 gained 75.80 points or 1.09% to 7,046.00. Over the last five days, the index has gained 1.48%, but is virtually unchanged over the last year to date.

Top-performing stocks in this index are Sayona Mining Ltd (ASX:SYA) and Chalice Mining Ltd (ASX:CHN, OTCQB:CGMLF), up 8.14% and 7.65% respectively.

Utilities was the best-performed sector at 4.20% higher, while Information technology was next best up 2.90%. Of interest, in the midst of war, is Energy, which gained 0.90%.

Major banks had a good day rising 0.4-0.9%, while the iron ore majors gained 0.1-0.9%, despite Singapore iron ore futures falling 1.4% to $US110.70 a tonne. WTI crude oil slipped 0.3% and gold futures rose 0.7%.

It was good news on the travel front as well as shares in Flight Centre (ASX:FLT) Travel Group Limited rose 1.09% to $19.41.

Speaking of a recent buyback, managing director Graham Turner said, "We have proactively entered into this transaction in light of the opportunity presented by prevailing market conditions and with a view to creating future value for our shareholders.

“We will continue to assess capital and liability management options in relation to the notes, as well as the $400 million 1.625% convertible notes due 2028 on an opportunistic basis in the future.”

The notes have been repurchased on the open market and are part of the $400 million 2.5% convertible notes due 2027.

Meanwhile, as we wait to hear about a Virgin Australia (ASX:VAH) listing for 2024, the airline announced its first annual profit in 11 years, reporting a $129 million net gain for the 2023 financial year.

This is a major turnaround on the previous year's $565.5 million loss and reflected a 124% increase in revenue to almost $5 billion.

Chief executive Jayne Hrdlicka said the airline's transformation under owners Bain Capital was progressing well.

"We have a long-term commitment to transformation and are only part-way through this multi-year journey," Hrdlicka said.

“By creating a systemically lower cost base and a conservative balance sheet as well as investing heavily in technology and our frontline, we are well positioned for the future.”

Several airlines were in the black.

Singapore Airlines achieved a record $2.4 billion net profit in the year to March 31 and Emirates posted a history-making $4.6 billion gain.

Profits come as demand for leisure travel increases, including small and medium enterprise travel returning to pre-Covid levels.

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