At the closing bell, the S&P/ASX 200 was 0.46 per cent higher at 7,339.70.
This increase was primarily driven by gains in mining stocks, as investors anticipated a rise in Chinese demand for iron ore, a crucial commodity used in steel-making.
China’s commitment to implement measures to stabilise its economy contributed to the surge in iron ore futures, which traded higher at $US114.50 per tonne on the August contract on the Singapore exchange. The materials and energy sectors were particularly buoyant during this period.
Futures
The Dow Jones futures are pointing to a fall of 5 points.
The S&P 500 futures are pointing to a rise of 2 points.
The Nasdaq futures are pointing to a rise of 8 points.
Best and worst performers
The best-performing sector was Materials, up 2.74 per cent. The worst-performing sector was Consumer Discretionary, down 0.8 per cent.
The best-performing large cap was Pilbara Minerals (ASX:PLS), closing 5.23 per cent higher at $4.83. It was followed by shares in Fortescue Metals Group (ASX:FMG) and Mineral Resources (ASX:MIN).
The worst-performing large cap was Qantas Airways (ASX:QAN), closing 1.64 per cent lower at $6.58. It was followed by shares in Fisher & Paykel Healthcare Corporation (ASX:FPH) and Sonic Healthcare (ASX:SHL).
Asian markets
Japan’s Nikkei has lost 0.06 per cent.
Hong Kong’s Hang Seng has gained 3.90 per cent.
China’s Shanghai Composite has gained 0.19 per cent.
Company news
Talon Energy (ASX:TPD) announced today that its JV Partner & Operator TMK Energy has advised that initial gas from the Lucky Fox-1 well has flowed to surface & flared at its Mongolian Gurvantes CSG Project.Talon’s Managing Director & CEO, Colby Hauser said “ We are pleased to announce the positive results from the extended production test and the promising early signs from the performance of the three pilot wells & we look forward to updating the market further. Shares closed 2.86 per cent higher at 18 cents.
Noble Helium (ASX:NHE) has provided an update on the targets for the upcoming drilling campaign at its North Rukwa Project in Tanzania, which continues to proceed as planned for spud in Q3 2023. Noble Helium CEO & Co Founder Justyn Wood commented “ While there is always risk in exploration, thanks to a comprehensive de-risking campaign, new data and our upward revised internal pre drill volume estimates present a compelling argument to focus on Mbelele in our maiden drilling campaign. A discovery at the Mbebele 1 well will be immediately appraised 4km away at the Mbelele 2 well, to support potential early commercialisation that would fund further drilling” The company is expected to spud Mbelele 1 in just two months. Shares closed 11.8 per cent higher at 28.5 cents.
Tamboran Resources (ASX:TBN) has announced that it has awarded John Wood Group the contract to undertake the Concept Select Engineering phase for the proposed NTLNG development at the Middle Arm Sustainable Development Precinct in Darwin. Tamboran Managing Director & CEO Joel Riddle said “ The commencement of this engineering phase with Wood signals Tamboran’s intent to design and develop a best in class, low emissions facility to process low reservoir CO2 Beetaloo gas for global LNG customers.” Shares closed 5.88 per cent lower at 16 cents.
Commodities and the dollar
Gold is trading at US$2001.20 an ounce.
Iron ore futures are pointing to a 1.42 per cent rise.
Light crude is trading $0.27 higher at US$79.01 a barrel.
One Australian dollar is buying 67.75 US cents.