The S&P/ASX200 was up 0.48% to 7,308.40 in morning trading reversing the 50-day low and the 0.4% fall in opening trade.
The top-performing stocks at the time of writing were Champion Iron Ltd (ASX:CIA) up 6.32% and Sims Ltd up 6.14%.
The index has lost 1.46% for the last five days, but sits 4.25% below its 52-week high.
Today’s surge has been led by the energy sector. Woodside Petroleum was up 2.3% to $21.40, Oil Search was up 1.5% to $3.82 and Santos rose 0.8% to $6.24.
However, following Victoria’s magnitude 6 quake, the insurance and banking sectors have already taken a hit.
QBE, IAG and Suncorp were all under pressure following the earthquake, which has caused building damage, which will no doubt see claims made.
For those of us in Victoria, the earthquake was a welcome attention grabber from the protests.
What the RBA said
As we reported this morning, the RBA was meeting today to discuss the housing market and financial stability.
The following is part of RBA Assistant Governor Michelle Bullock’s transcript …
“But with the increase in housing prices and housing debt, risks to financial stability could be building.
“Even though the banks have strong balance sheets and lending standards are being maintained, there is a risk that in this environment, households will become increasingly indebted.
“A high level of debt could pose risks to the economy in the event of a shock to household incomes or a sharp decline in housing prices. It is these macro-financial risks that warrant close watching.”
The RBA continues to assess the need for macro-prudential tools to address these risks.
On the small cap front
Some of the big gainers (at time of writing) include Genesis (TSX:GDC) Minerals Ltd up 136.3%, Pepinnini Minerals Ltd up 30% and Norwest Energy NL (ASX:NWE) up 38.1%.
Lake Resources Ltd is up 16.5% having finalised a partnership for technology and funding to develop the Kachi Lithium Brine Project in Argentina.
Archer Materials Ltd (ASX:AXE, OTC:ARRXF) is up 10.4% reaching its most significant early-stage commercialisation milestone with the granting of a US patent for its 12CQ quantum computing chip.
Tietto Minerals Ltd (ASX:TIE) is up 3.13% after intersecting more high-grade gold in the second batch of infill drilling at the Abujar‐Gludehi (AG) deposit, part of its 3.35-million-ounce Abujar Gold Project in Côte d’Ivoire, West Africa.
Others of note include:
- ALK is up 7.14%
- ARU is up 5.17%
- AUN is up 2.94%
- APC is up 2.11%
- ASM is up 2.48%
- AUT is up 5.19%
- BSX is up 3.30%
- BNL is up 2.13%
- BOA is up 8.11%
- BRU is up 7.14%
- CVS is up 12.5%
- CPT is up 3.23%
- CPH is up 4.55%
- ERM is up 3.12%
- FYI is up 9.49%
- HFR is up 4.26%
- IMU is up 4.4%
- JRL is up 2.92%
- KKO is up 5%
- KSN is up 2.56%
- KWR is up 2.08%
- LIN is up 3.7%
- LIT is up 4%
- MXC is up 3.45%
- MEU is up 4.17%
- MM8 is up 2.27%
- MGV is up 3.7%
- OAR is up 4.17%
- PNR is up 7.50%
- PAB is up 2.56%
- PRU is up 3.1%
- POS is up 3.09%
- PDI is up 3.85%
- SNS is up 4.17%
- SVL is up 2.63%
- SRI is up 3.17%
- SHP is up 4.17%
- SUD is up 2.04%
- TMR is up 2.5%
- TEG is up 10.53%
- VAL is up 5.26%
- VMS is up 2.08%
- VRC is up 3.23%
- WKT is up 2.5%