Evening Wrap: ASX 200 gains as wall of buying sweeps base metals and gold stocks higher, BHP closes in on $70

The S&P/ASX 200 (XJO) finished 44.2 points higher at 9,103.1, 0.5% from its session low and 0.3% from its high. In the broader-based S&P/ASX 300 (XKO) advancers beat decliners by a narrow 154 to 134.

Materials (XMJ) (+2.4%) was Monday’s standout sector, carrying the full weight of Friday night’s extraordinary LME session where aluminium gained 1.4%, copper 1.8%, nickel 1.2%, tin 1.9%, and zinc 3.0% — a broad-based industrial metals surge driven by the US dollar’s sharp weekly decline as elevated US bond yields undermined confidence in the currency.

COMEX copper futures eased just 0.3% to US$6.569/lb in Asian trade — consolidating after Friday’s gains — while SGX iron ore futures gained 1.6% to US$97.55/t in a welcome recovery for the iron ore complex. Nickel Industries (NIC) (+6.0%) led the base metals names, with South32 (S32) (+3.7%), Sandfire Resources (SFR) (+3.6%), and BHP (BHP) (+3.0%) all posting strong gains (another record for the Big Australian which is now closing in on $70! 🚀).

S&P-ASX 200 Materials Sector Index

The Gold Sub-Index (XGD) (+1.7%) extended its remarkable August run — now up more than 34% across the month — as COMEX gold futures added a further 0.3% to US$4,696.40/oz. The weaker US dollar provided the same tailwind for precious metals as it did for base metals, since gold is dollar-priced and becomes cheaper for non-US buyers when the greenback weakens.

A pause in crude oil’s month-long ascent — ICE Brent easing 1.5% to US$91.30/bbl — also helped, as lower diesel costs reduce the margin pressure on gold producers even as revenue rises. Ora Banda Mining (OBM) (+3.7%), Alkane Resources (ALK) (+3.1%), Genesis Minerals (GMD) (+3.0%), and West African Resources (WAF) (+2.9%) all advanced.

S&P-ASX All Ordinaries Gold SubInd Index 

Information Technology (XIJ) (+1.0%) caught a positive lead from the Nasdaq’s Friday gain and the continued recovery in its two most prominent names. WiseTech Global (WTC) (+2.7%) has now fully recouped every cent of its savage losses following the ACCC search warrant announcement three sessions ago. Xero (XRO) (+2.0%) also continued its rerating, with Technology One (TNE) (+2.9%) advancing on strong ongoing demand for its cloud-based ERP platform.

Health Care (XHJ) (+0.6%) extended its recent winning streak, continuing to draw rotational flows from the still-retreating Financials sector. Ansell (ANN) (+9.6%) was the session’s healthcare standout after posting full-year results that exceeded expectations, while Telix Pharmaceuticals (TLX) (+3.5%), Fisher & Paykel Healthcare (FPH) (+2.1%), and Sonic Healthcare (SHL) (+1.7%) all advanced.

Energy (XEJ) (+0.5%) was a split sector — the oil price pullback weighed on producers while coal stocks and fuel refiners moved in the opposite direction. globalCoal Newcastle Coal futures gained 1.9% to US$140.90/t, lifting Whitehaven Coal (WHC) (+4.4%), Yancoal Australia (YAL) (+3.7%), and New Hope Corp. (NHC) (+2.4%) sharply.

Fuel refiners also advanced — Ampol (ALD) (+4.3%) and Viva Energy (VEA) (+1.8%) both gained as a softening crude oil price improves their refinery margins. Oil and gas producers moved the other way — Santos (STO) (-1.8%) and Woodside Energy (WDS) (-0.9%) both fell as ICE Brent’s 1.5% decline to US$91.30/bbl translated directly into producer revenue concerns.

S&P-ASX 200 Financials Sector Index

Financials (XFJ) (-0.7%) extended a losing run that now spans 10 of the past 13 sessions since the sector’s August 6 all-time high — a decline of approximately 10% that has been entirely triggered by the domestic mortgage market deterioration confirmed in recent successive bank results.

Today’s damage was concentrated in the insurance sub-sector rather than the major banks. NIB Holdings (NHF) (-9.1%) was the session’s sharpest individual faller after posting a full-year result that disappointed, while Medibank Private (MPL) (-3.8%), Insurance Australia Group (IAG) (-3.8%), and QBE Insurance (QBE) (-2.1%) all fell sharply.

The major banks were only modestly lower — Commonwealth Bank (CBA), Westpac (WBC), ANZ (ANZ), and National Australia Bank (NAB) all eased between 0.2% and 0.8%.

Consumer Staples (XSJ) (-1.0%) found no buyers on a risk-on day — the same pattern seen repeatedly through this month. Endeavour Group (EDV) (-4.7%) was the sector’s sharpest faller without a confirmed fresh catalyst. Woolworths (WOW) (-0.8%) and Coles (COL) (-0.8%) both eased as defensive capital found more exciting alternatives.

Utilities (XUJ) (-0.5%) gave back ground for the same reason — a sector that thrives when investors are anxious struggled to attract buyers when gold, copper, and technology were all surging. AGL Energy (AGL) (-1.1%) and Origin Energy (ORG) (-0.8%) were both softer.

In other commodities moves, uranium stocks surged as the Sprott Uranium Miners ETF gained 7.7% on Friday — a move largely driven by Cameco, the world’s largest independent uranium producer, jumping 7.2% in New York on the same day. COMEX uranium futures gained 0.7% to US$89.40/lb, now up 3.7% since August 4 and approaching territory that has attracted significant institutional attention in prior cycles. Boss Energy (BOE) (+9.3%), Deep Yellow (DYL) (+8.5%), Paladin Energy (PDN) (+8.2%), Bannerman Energy (BMN) (+7.4%), and NexGen Energy (NXG) (+6.2%) all surged.

Lithium stocks also advanced as GFEX lithium carbonate futures gained 1.9% to CNY 161,760/t — their second consecutive positive session and a sign that the commodity price floor found last week may be holding. Liontown Resources (LTR) (+5.2%), Pilbara Minerals (PLS) (+4.8%), Core Lithium (CXO) (+4.5%), and IGO (IGO) (+3.1%) all advanced.