Australian shares rise again even as gold slips

The energy, materials and industrials sectors dipped while all others gained ground on Tuesday.

The Australian share market has finished higher for a second day as gains by the financial and tech sectors outweighed a big sell-off among goldminers and smaller losses for coalminers and uranium companies.

The benchmark S&P/ASX200 index on Tuesday finished 34.3 points higher at 7,683.5, a gain of 0.45 per cent, while the broader All Ordinaries rose 35.9 points, or 0.45 per cent, to 7,937.9.

“Investors re-engaged with risky assets overnight as risk sentiment improved amid an environment of easing tensions in the Middle East and a lack of top-tier economic data,” wrote St George economist Jarek Kowcza.

Gold, which has been rallying since the start of March to its highest levels ever, dropped by 1.0 per cent to a two-week low of $2,302 an ounce overnight as the threat of war in the Middle East receded.

Newmont dropped 4.6 per cent to a two-week low of $56.95, Evolution fell 1.5 per cent to $3.95 and Northern Star dropped 3.5 per cent to $14.74 on a mixed third-quarter update.

“The March quarter was challenging but also demonstrated the resilience of our teams at our three production centres,” Northern Star managing director Stuart Tonkin said.

Elsewhere in the materials sector, BHP rose 0.2 per cent to $45.50 while Fortescue dropped 0.8 per cent to $24.60 and Rio Tinto dipped 0.2 per cent to $129.57.

Overall the mining sector was down 0.3 per cent, joining energy and industrials as modest losers.

The ASX’s eight other sectors gained ground, with tech the best performers, rising 1.7 per cent as Wisetech Global climbed 2.7 per cent to $91.60.

In the energy sector, Woodside lost 0.7 per cent to $28.43 ahead of Wednesday’s annual general meeting, Whitehaven Coal slipped 1.9 per cent and its peers Yancoal and New Hope both fell more than two per cent.

As for the uranium companies, Boss Energy fell 4.2 per cent, Deep Yellow slipped 2.9 per cent and Paladin slid 1.6 per cent.

Elsewhere, the Big Four banks all finished higher, with CBA rising 1.5 per cent to $114.58, NAB adding 1.3 per cent to $33.84, and ANZ and Westpac both up 0.9 per cent, to $28.47 and $25.97, respectively.

Lifestyle Communities was the biggest loser on the ASX200, falling 13.5 per cent to a nearly two-year low of $12.32 after the retirement village developer said its beachside and northwest Melbourne sales had been lagging behind expectations due to customers taking longer selling their existing homes than forecast.

Brambles fell 6.3 per cent to a three-month low of $14.64 after a softer-than-expected third-quarter sales update from the reusable pallet company.

“Despite … improved supply chain dynamics, we continue to experience inflationary pressures in labour costs globally, transport costs in Europe and ongoing fluctuations in fuel prices,” chief executive Graham Chipchase said.

In small caps, cannabis company Vitura Health plunged 31.3 per cent to a more than two-year low of 11c after a partner said it would terminate a services agreement with Vitura’s pharmacy prescribing platform, threatening to create a “material disruption to Vitura’s operations.”

The Australian dollar was buying 64.53 US cents, up from 64.33 US cents at Monday’s ASX close.

Also on Tuesday, a biannual survey by global trading platform IG found 65 per cent of its clients believed the ASX 200 would rise in the next six months, the most bullish results since January 2022.

Looking forward, the Australian Bureau of Statistics will on Wednesday release the March quarter inflation data that be key in deciding whether the Reserve Bank cuts interest rates later this year.

ON THE ASX:

* The benchmark S&P/ASX200 index finished Tuesday up 34.3 points, or 0.45 per cent, at 7,683.5.

* The broader All Ordinaries rose 35.9 points, or 0.45 per cent, to 7,937.9.

CURRENCY SNAPSHOT:

One Australian dollar buys:

* 65.45 US cents, from 64.33 US cents at Monday’s ASX close

* 99.84 Japanese yen, from 99.55 Japanese yen

* 60.60 Euro cents, from 60.33 Euro cents

* 52.24 British pence, from 51.97 pence

* 109.13 NZ cents, from 108.87 NZ cents.