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ASX rises 0.59% on FY24s first day, driven by seasonal trade strategy

Supported by positive sentiment from Wall Street, the S&P/ASX 200 closed 0.59 per cent higher at 7,246.10, with the benchmark index gaining 0.3% and nine out of 11 sectors experiencing gains.

Additionally, trading was influenced by a seasonal trade strategy where investors sell winners from the previous year and purchase last year’s losers on the first day of the new financial year.


The Dow Jones futures are pointing to a fall of 25 points.
The S&P 500 futures are pointing to a fall of 2.5 points.
The Nasdaq futures are pointing to a rise of 9.25 points.
The SPI futures are up 56 points.

Best and worst performers

The best-performing sector was Consumer Discretionary, up 1.41 per cent. The worst-performing sector was Information Technology, down 1.45 per cent.

The best-performing large cap was Northern Star Resources (ASX:NST), closing 3.56 per cent higher at $12.51. It was followed by shares in Pilbara Minerals (ASX:PLS) and Evolution Mining (ASX:EVN).

The worst-performing large cap was Meridian Energy (ASX:MEZ), closing 3.31 per cent lower at $4.97. It was followed by shares in WiseTech Global (ASX:WTC) and Technology One (ASX:TNE).

Asian markets

Japan’s Nikkei has gained 1.70 per cent.
Hong Kong’s Hang Seng has gained 1.80 per cent.
China’s Shanghai Composite has gained 1.45 per cent.

Company news

Lumos Diagnostics (ASX:LDX) has received FDA clearance for its FebriDx product, which can rapidly differentiate viral from bacterial infections at point of care. Doug Ward, CEO commented, “With this clearance in hand, we anticipate securing our first commercial orders in the US before the end of calendar year 2023.” Shares closed 564 per cent higher at 7.3 cents.

Kuniko (ASX:KNI) has received a $7.8m equity investment from Stellantis, a world-leading automaker and provider of mobility solutions. In return, Stellantis will acquire a 19.99 per cent stake in Kuniko. The companies have also agreed on an offtake term sheet, according to which Stellanits has secured 35 per cent of future nickel sulphate and cobalt sulphate from Kuniko’s Norwegian projects. Shares closed 37.2 per cent higher at 59 cents.

Asra Minerals (ASX:ASR) has released final assay results from the company’s Yttria project in WA. These results confirm high-value deposits of rare earth elements. MD Rob Longley commented, “We’re thrilled that these consistent near-surface results… are further raising Yttria’s potential value.” Shares closed 57.1 per cent higher at 1.1 cents.

Sunstone Metals (ASX:STM) has announced high grade gold and silver results from the company’s project in Southern Ecuador. MD Malcolm Norris said: “Bramaderos Project has every potential to be a 10Moz district with multiple deposits within 4km of one another.” Shares closed 11.5 per cent higher at 2.9 cents.

Commodities and the dollar

Gold is trading at US$1,923.50 an ounce.
Iron ore is 1.7 per cent lower at US$111.60 a tonne.
Iron ore futures are pointing to a 1.2 per cent fall.
Light crude is trading $0.13 lower at US$70.52 a barrel.
One Australian dollar is buying 66.42 US cents.