ASX ends the week on a high note, up 1pc
Market bullish after strong outlook by global giant, TSMC
Coal mining stocks Yancoal and Whitehaven jump after updates
Aussie shares rebounded by 1% on Friday following a rally in US tech stocks overnight. For the week however, the benchmark ASX 200 index is down by -1%.
There was improved risk sentiment across most major European, UK and US equities markets last night, buoyed by some positive outlook from Taiwan Semiconductor Manufacturing Company (TSMC).
Further, comments from Atlanta Fed Reserve President Raphael Bostic offered hope that US interest rates could be cut this year.
On the ASX today, all sectors except for Utilities flashed green, with heavyweight financial and mining stocks leading the way.
Coal mining stocks led as Yancoal (ASX:YAL) and Whitehaven (ASX:WHC) gave the market their December quarter updates, with the latter’s share price hitting a 1-year high.
Meanwhile, the US Congress has, in the last couple of hours, passed a temporary bill that will avert a partial US government shutdown this weekend. Without the bill, some US agencies were set to run out of money after today.
Across the region, Asian stock markets mostly advanced, fuelled by hopes for a global recovery.
“The better-than-expected results from TSMC could be positive signals on demand recovery,” An Hyungjin, fund manager at Billionfold Asset Management, told Bloomberg.
Looking ahead to tonight in the US, December existing home sales are due, together with the University of Michigan January consumer sentiment.
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Yancoal Australia (ASX:YAL) surged over 5% after releasing its December quarter report.
The company achieved 10.1Mt of attributable coal sales during the December quarter. The average realised coal price came in at $196/t, versus $422/t in the pcp.
The coal miner also produced 12.9Mt of saleable coal for the quarter, and held $477m in cash at 31 December.
Rival Whitehaven Coal (ASX:WHC) meanwhile rose by 4% after saying that its December quarter ROM (run-of-mine) production fell 6% for the three months to 5.0Mt, but FY24-to-date production was up 17%.
WHC’s coal sales rose 21% to 3.7Mt in the quarter, with an average realised price of $216/t from $224/t in the pcp, and against $527/t for the December quarter 2022.
WHC says it holds $1.5b of net cash.
Mining services stock NRW Holdings (ASX:NWH) rose 1% after being designated ‘preferred proponent’ to deliver a $225m suburban Perth roadwork interchange project, funded equally by the Australian and WA governments.
The Reid Highway Interchanges project is a new free-flowing interchanges on Reid Highway at Altone Road and Drumpellier Drive / Daviot Road to improve safety, traffic flow and urban amenity. It’s being built by Main Roads.
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The post ASX Large Caps: Shares up 1pc as coal stocks Whitehaven, Yancoal jump on quarterly updates appeared first on Stockhead.
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