by Peter Milios
Following weaker than expected GDP data, the S&P/ASX 200 Index closed the day down by 0.1 per cent at 7251.6 points.
The Australian Bureau of Statistics reported that the country’s economy expanded by 0.5 per cent in the December quarter, falling short of the forecasted 0.8 per cent and lower than the previous quarter’s growth of 0.7 per cent.
Additionally, the annual CPI increase of 7.4 per cent was also below forecasts.
Despite this, iron ore prices on the Singapore futures market rose by 2.1 per cent to $US126 per tonne on the March contract, resulting in a surge in mining company stocks.
Fortescue (ASX:FMG) saw a 3.4 per cent increase to $22.12, BHP (ASX:BHP) rose by 2.3 per cent to $46.22, and Woodside (ASX:WDS) increased by 2.5 per cent to $36.70.
Futures
The Dow Jones futures are pointing to a rise of 21 points.
The S&P 500 futures are pointing to a rise of 0.25 points.
The Nasdaq futures are pointing to a fall of 6 points.
The SPI futures are pointing to a rise of 12 points when the market next opens.
Best and worst performers
The best-performing sector was Materials, up 2.29 per cent. The worst-performing sector was Communication Services, down 2.26 per cent.
The best-performing large cap was Yancoal Australia (ASX:YAL), closing 5.12 per cent higher at $6.16. It was followed by shares in Allkem (ASX:AKE) and Mineral Resources (ASX:MIN).
The worst-performing large cap was Endeavour Group (ASX:EDV), closing 2.78 per cent lower at $6.64. It was followed by shares in Treasury Wine Estates (ASX:TWE) and Atlas Arteria (ASX:ALX).
Asian markets
Japan’s Nikkei has gained 0.23 per cent.
Hong Kong’s Hang Seng has gained 3.62 per cent.
China’s Shanghai Composite has lost 0.10 per cent.
Company news
Argent Minerals (ASX:ARD) has announced extensive new high-grade silver-lead-zinc at their Kempfield Deposit in NSW. In response, Argent Managing Director Mr Kastellorizos commented: “We have intersected in all the drill holes extensive sulphide mineralisation.” Shares closed 6.7 per cent higher at 1.6 cents.
Valor Resources (ASX:VAL) has announced key DIA approval for drilling at their Picha Copper Project in Peru. In response, Valor Executive Chairman, George Bauk, said: “this is another exciting milestone for Valor. With social agreements already in place over the Effective Area, we can move ahead directly with an application for Authorization to Commence Drilling over 120 planned holes at the Central Picha Project.” Shares closed 25 per cent higher at 0.5 cents.
Oceana Lithium (ASX:OCN) has announced high-grade surface lithium mineralisation, including spodumene, confirmed at their project in Brazil. In response, Oceana Chairman Gino Vitale said: “Multiple lithium bearing minerals and potential zonation present in our ground indicate substantial lithium enrichment in this well-recognized LCT pegmatite district.” Shares closed 6.94 per cent higher at 38.5 cents.
Commodities and the dollar
Gold is trading at US$1,837.40 an ounce.
Iron ore is 1.3 per cent higher at US$124.10 a tonne.
Iron ore futures are pointing to a 2.08 per cent rise.
Light crude is trading $0.43 higher at US$77.48 a barrel.
One Australian dollar is buying 67.59 US cents.
