Broad-based gains led the ASX higher today, following in the footsteps of Wall Street’s last session.
The Dow Jones index closed 1.8% higher, the S&P 500 index gained 2.1% and the Nasdaq index rose 2.9%. The ASX 200 gained 77.80 points or 1.10% to 7,175.20 and crossed above its 20-day moving average. Over the last five days, the index has gained 1.73% but is down 3.62% for the last year to date.
Top-performing stocks in this index were Life360 Inc up 7.20% and Corporate Travel Management Ltd (ASX:CTD) up 5.26%.
Travel stocks may well have been higher as, in February, 300,000 people entered Australia from overseas – the largest number of travellers since March 2020 (effectively two years ago).
The Australian Bureau of Statistics (ABS) show a provisional number of 272,340 overseas arrivals to our shores. Meanwhile, Qantas Airways (ASX:QAN) Limited and Jetstar are increasing flights to New Zealand and will operate up to 30 return flights per week on five routes from April 13.
Qantas was 2.2% higher today.
The winners' circle
Tech stocks were 3.3% higher following a 2.9% jump on the Nasdaq 100. Block Inc was 7% higher and Appen Ltd at 4.8% higher made the bigger gains.
Magellan Financial Group Ltd (ASX:MFG) gained 3.9% to $14.40 in response to its buyback program, while Seek Limited (ASX:SEK) climbed 4.3% to $29.96 ahead of the latest job figures, which is expected to show another decrease in the number of people unemployed. The report will be released tomorrow.
The losers' circle
Energy was the worst performed sector, down 0.2%. It was weighed down by Whitehaven Coal Ltd (-1.7%), Viva Energy Group Ltd (-0.4%) and Worley Ltd (-0.4%).
Thirty-nine companies on the ASX 200 finished in the red, with Super Retail Group Ltd (ASX:SUL) falling 3.2% Nanosonics Ltd down 3.1% and Seven West Media Ltd (ASX:SWM), which had its target price slashed by brokers, losing 2.4%.
Nickel Mines benefits as LME swings back
The London Metals Exchange (LME) has been suspended since March 8 after Tsingshan Holding Group made a disastrous $11 billion bet on the nickel price.
The move led to a plunge in Nickel Mines Ltd's share price. Tsingshan is Nickel Mines' largest shareholder and the move led to speculation over the health of the business. Founder and Chinese metals tycoon Xiang Guangda took extensive short positions on nickel traded on the LME and faced paper losses of up to $8 billion.
With the LME now reopen, Nickel Mines is on the road to recovery having gained 3.46% today.
It comes as nickel prices surge as trading in the metal spiked to above $US100,000.
"Trading in LME nickel contracts will resume at 0800 London time (0800 GMT) on Wednesday,” the exchange said in a statement, adding daily price moves would be capped at 5.0%.
The LME has imposed a 15% cap on daily movements on other metals including lead, copper, zinc, tin and aluminium.
“Whilst price moves in the nickel market have been a key focus, the LME has observed high levels of volatility across the base metals markets more broadly,” it adds.
“Market participants have raised concern regarding the risk of sudden, extreme price moves in other metals, particularly given the geopolitical backdrop.”
On the small cap front
- Australian Vanadium Ltd finished 40.00% higher.
- Latin Resources Ltd finished 21.95% higher.
- Arafura Resources Ltd finished 15.38% higher.
- Azure Minerals Ltd finished 10.14% higher.
- Elementos Ltd finished 9.86% higher.
- Apollo Minerals Ltd finished 6.94% higher.
- BlackEarth Minerals NL finished 4.35% higher.
- Dundas Minerals Ltd finished 3.70% higher.
- Krakatoa Resources Ltd finished 2.38% higher.
- Gascoyne Resources Ltd finished 1.54% higher.