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Miners surge due to high iron ore prices: ASX closes 1% higher

At the closing bell, the S&P/ASX 200 was 1.00 per cent higher at 7,216.30.

The increase was driven by the mining and consumer discretionary sectors, which offset losses in the tech stocks.

The major mining companies experienced gains due to higher iron ore prices. Fortescue (ASX:FMG) rose 3.6% to $20.40, BHP (ASX:BHP) increased by 1.7% to $44, and Rio Tinto (ASX:RIO) saw a 1.3% gain to reach $111.59.

Elders (ASX:ELD) also saw a positive performance, climbing 2.7% to $6.55 per cent. This increase followed the announcement that their chief executive, Mark Allison, would continue in his role.

However, gold miners faced challenges as the stronger US dollar impacted the price of precious metals. Silver Lake (ASX:SLR) experienced a 4.1% decline, reaching $1.05, while Perseus Mining (ASX:PRU) dropped 2.9% to $1.85.


The Dow Jones futures are pointing to a rise of 33 points.
The S&P 500 futures are pointing to a fall of 1.25 points.
The Nasdaq futures are pointing to a fall of 39.75 points.

Best and worst performers

The best-performing sector was Consumer Discretionary, up 1.75 per cent. The worst-performing sector was Information Technology, down 1.08 per cent.

The best-performing large cap was Pro Medicus (ASX:PME), closing 4.81 per cent higher at $65.14. It was followed by shares in IDP Education (ASX:IEL) and Fortescue Metals Group (ASX:FMG).

The worst-performing large cap was Xero (ASX:XRO), closing 1.84 per cent lower at $109.81. It was followed by shares in Newcrest Mining (ASX:NCM) and NEXTDC (ASX:NXT).

Asian markets

Japan’s Nikkei has gained 2.20 per cent.
Hong Kong’s Hang Seng has gained 0.71 per cent.
China’s Shanghai Composite has gained 1.07 per cent.

Company news

Resources & Energy Group (ASX:REZ) announced that their opening drilling campaign has confirmed nickel sulphides at their Springfield Nickel Prospect in WA. MD and CEO, J. Daniel Moore commented, “[the 100 per cent-owned package we have today has] opened the way to modern approaches for exploration and the sorts of drill hits we are now enjoying.” Shares closed 183 per cent higher at 3.4 cents.

WA1 Resources (ASX:WA1) has released similar news, announcing that their 2023 drilling program has recorded the highest grade of niobium intersection to date at their West Arunta Project in WA. MD, Paul Savich, commented: ““These latest assay results now demonstrate that Luni has a large and extremely high-grade niobium footprint which we are working to extend further.” Shares closed 27.7 per cent higher at $5.99.

ImpediMed (ASX:IPD) announces its first published medical policy from a Blue Cross Blue Shield Health plan covering L-Dex. MD and CEO Richard Valencia said, “we continue to see the response and action by payers accelerate on an almost daily basis and a new BCBS policy will no doubt further accelerate payor momentum.” Shares closed 12.5 per cent higher at 15.8 cents.

Commodities and the dollar

Gold is trading at US$1,958.00 an ounce.
Iron ore futures are pointing to a 2.15 per cent rise.
Light crude is trading $1.07 higher at US$72.81 a barrel.
One Australian dollar is buying 65.93 US cents.