UPDATE: The Santa Claus rally has officially ignited the Australian Securities Exchange (ASX) today, with the benchmark ASX 200 surging 78.50 points or 0.91% to reach 8,699.90. This broad-based market rally occurred during a shortened trading week, as all 11 sectors finished in the green, led by materials and energy stocks.
The All Ordinaries also climbed, gaining 82.40 points or 0.92% to hit 9,000.70 points. In a show of strength, the Australian dollar appreciated 0.24% against the US dollar, trading at 66.27 US cents.
Materials stocks are at the forefront of this rally, buoyed by soaring prices—copper broke past US$12,000 a tonne and gold reached US$4,390 an ounce. Major players like BHP saw shares jump 1.60% to $45.07, while Rio Tinto gained 1.01% to $144.52. Fortescue led its iron ore rivals, rising 1.74% to $22.26.
Gold miners are also reaping the benefits: Northern Star Resources skyrocketed 4.07% to $26.87, Evolution Mining surged 3.17% to $13.02, and Newmont skyrocketed 5.21% to $156.23. The telecommunications sector saw Aussie Broadband shares soar 5.85% to $5.07, while Telstra added 0.41% to $4.84.
Uranium stocks are also witnessing significant gains, with Paladin Energy up 7.04% to $9.73 and Deep Yellow jumping 4.17% to $1.87. Meanwhile, the financial sector had a mixed day; Commonwealth Bank edged up 0.32% to $158.26, and ANZ rose 0.67% to $36.27, while Westpac and National Australia Bank experienced slight declines.
Analyst Tony Sycamore from IG Markets noted the late arrival of this year’s Santa Claus rally but emphasized its potential for traders.
“With Wall Street closing firmly on Friday night and the rally spreading across Asia, today’s gains signal that the traditional Santa Claus rally has finally kicked in,”
he stated. Sycamore also mentioned that the December trading range remains thin, suggesting room for further market rallies into the new year.
In corporate news, shares of Nick Scali surged 9.88% to $23.25 after announcing a forecast of 10% to 12% revenue growth in Australia and New Zealand. DroneShield shares also climbed 7.91% to $3 following a governance review update.
Additionally, Seven West Media will cease operations as investors approved a takeover bid from Southern Cross Media. Under this proposal, Seven West shareholders will receive 0.1552 shares in Southern Cross for each share they hold, giving them 49.9% ownership of the new entity.
As the markets continue to react, traders and investors are urged to stay informed about these rapid developments.
