by Peter Milios
Australia’s Producer Price Index (PPI) rose by 1 per cent in the March quarter of the year and increased by 5.2 per cent compared to the same period in the previous year. The rise was driven by a 13.3 per cent increase in electricity and gas supply prices due to long-term contract renewals, a 1.1 per cent increase in building construction costs due to continued demand and labor shortages, and a 3.7 per cent rise in education and training service costs due to tertiary education fee increases.
At noon, the S&P/ASX 200 is 0.43 per cent higher at 7,323.70.
The SPI futures are pointing to a rise of 41 points.
Best and worst performers
The best-performing sector is Financials, up 1.13 per cent. The worst-performing sector is Health Care, down 0.92 per cent.
The best-performing large cap is Pilbara Minerals (ASX:PLS), trading 5.56 per cent higher at $4.18. It is followed by shares in Allkem (ASX:AKE) and Meridian Energy (ASX:MEZ).
The worst-performing large cap is Northern Star Resources (ASX:NST), trading 3.39 per cent lower at $13.40. It is followed by shares in Coles Group (ASX:COL) and Ampol (ASX:ALD).
Asian markets
Asia-Pacific markets rose on Friday after Wall Street logged one of its best days in the year, powered by earnings from Big Tech companies.
Investors in Asia will be closely watching as the Bank of Japan concludes its monetary policy meeting today, the first under new BOJ governor Kazuo Ueda.
Japanese markets were all higher, with the Nikkei 225 rising 0.49% and the Topix up 0.58%. Japan’s unemployment rate also came in above expectations at 2.8% for March.
The South Korean Kospi was 0.7% higher and the Kosdaq climbed 0.71%.
Hong Kong’s Hang Seng index popped 1.31% in early trade, while the Hang Seng Tech index jumped 2.07%. Mainland Chinese markets were more mixed, with the Shenzhen Component up by 0.7%, but the Shanghai Composite was down marginally.
Company news
Sunstone Metals (ASX:STM) has announced that their drilling has intersected a porphyry copper system in a large magnetic complex in their El Palmar deposit in Ecuador. Managing Director Malcolm Norris said: “It is in this third environment on the margin of the T3 magnetic complex that an extensive porphyry system is now being intersected.” Shares are trading 2.9 per cent higher at 3.5 cents.
iTech Minerals (ASX:ITM) has announced graphite mineralisation intersected at their Sugarloaf Graphite Prospect in South Australia. In response, MD Mike Schwarz commented “A strike rate of 15 out of 17 drill holes hitting significant mineralisation, over 2.3 km, is a significant indicator for the scale potential of the project and will allow metallurgical test work to get underway.” Shares are trading 10 per cent higher at 27.5 cents.
Platina Resources (ASX:PGM) has announced that they will sell their Platina Scandium Project for up to US$14 million with a wholly owned subsidiary of Rio Tinto. Platina Managing Director, Mr Corey Nolan, “The transaction with Rio Tinto is congruent with Platina’s strategy of advancing projects along the value chain and monetising when a new combination of technical, market or financial capability is required.” Shares are trading 3.85 per cent higher at 2.7 cents.
Commodities and the dollar
Gold is trading at US$1998.80 an ounce.
Iron ore futures are pointing to a 0.06 per cent rise.
One Australian dollar is buying 66.36 US cents.
