The Australian sharemarket closed firmly in the green, with mining stocks leading the pack thanks to higher commodity prices and travel stocks continuing to surge in anticipation of international tourism resuming.
Shaking off a weak lead from Wall Street overnight, the benchmark S&P/ASX200 index rose 1.07 per cent to 7186.7, while the All Ordinaries Index gained 1.01 per cent to 7489.
IG market analyst Kyle Rodda said there was not a great appetite for risk, but the ASX200 held up well, with some follow through from Monday’s announcement on double-vaccinated overseas travellers being welcomed from February 21.
Regional Express jumped 9.32 per cent to $1.52, Flight Centre leapt 6.7 per cent to $20.21, Webjet advanced 7.44 per cent to $5.92 and Corporate Travel Management put on 4.27 per cent to $22.96.
Helloworld Travel added 3.52 per cent to $2.65 and Qantas firmed 1.1 per cent to $5.49.
“For the ASX200, a surging iron ore price, which cracked $150 per tonne again overnight, has been the major driver of its strength,” Mr Rodda said.
Rio Tinto rose 2.17 per cent to $117.18, BHP gained 3.7 per cent to $49.15 and Fortescue lifted 3.25 per cent to $22.23.
OMG chief executive Ivan Tchourilov said the iron ore price strength came despite threats from Chinese authorities to crack down on market speculation.
Coking coal, used in steel making, hit a record high overnight.
Macquarie Group reported a record December quarter in an operational briefing, crediting improved overall market conditions.
Mr Tchourilov said specific fxjmtzywigures weren’t provided to back up the record claim, which Citi also noted, estimating it implied net profit of more than $1.3bn.
Shares in the investment bank were up 3.89 per cent at $201.57, compared to Citi’s 12 month price target of $226.
ANZ improved 1.47 per cent to $26.96, Commonwealth Bank firmed 0.32 per cent to $94.30, National Australia Bank strengthened 0.58 per cent to $27.73 and Westpac gained 1.35 per cent to $21.85.
Insurer Suncorp booked a first half net profit slide amid higher claims costs from natural hazards and lower investment market returns.
But Jarden analyst Kieren Chidgey was impressed, describing cash earnings of $361m as a “strong beat … ahead of consensus”.
Mr Tchourilov agreed.
“This strong performance came despite the finance, insurance and banking group reporting a profit plummet of 20.8 per cent during the first six months of FY22,” he said.
S&P Global Ratings said Suncorp’s top-line growth exceeded expectations.
“We expect Suncorp’s earnings to improve in the second half of its 2022 fiscal year, with the group’s reinsurance arrangements to cut in and moderate potential net natural hazard losses,” the ratings agency said.
“Investment markets are also likely to weigh less on its earnings over the period.”
Suncorp shares gained 5.53 per cent to $12.03.
Shopping Centres Australasia Property Group booked a massive 320 per cent surge in first half profit, mainly due to an increase in the fair value of investment properties.
Its shares rose 3.2 per cent to $2.89, but Goldman Sachs maintained its sell rating, with a 12 month target price of $2.46.
Magellan Financial jumped 7.18 per cent to $17.61 “as it tries to rally against the terrible downward trend it has experienced since mid-December”, Mr Tchourilov said.
“This came off the back of the unfortunate news that chief investment officer Hamish Douglass has taken a leave of absence following the recent period of high pressure on the investment management group.”
Medicinal cannabis company Little Green Pharma rose 4.63 per cent to 56.5 cents after announcing its intention to demerge its psychedelics business.
It is also teaming up with Curtin University to explore the use of medicinal cannabis treatment options for obesity and even diabetes reversion.
Smart building materials company ClearVue Technologies announced it had inked a deal with California-based solar component manufacturer D2Solar “to ensure a stable and secure US supply chain”.
ClearVue shares rocketed 10.8 per cent to 41 cents.
Infection prevention solutions company Nanosonics slid 4.76 per cent to $4.80 after announcing a revised sales model with GE Healthcare in North America, saying it would have a one-off revenue impact of $13-16m.
The only two sectors in the red were consumer staples and information technology.
Woolworths backtracked 1.57 per cent to $33.82 and Coles eased 0.6 per cent to $16.44.
Computershare slipped 2.35 per cent to $19.93, Afterpay acquirer Block dropped 6.33 per cent to $142 and Appen fell 7.4 per cent to $8.25.
The Aussie dollar was fetching 71.1 US cents, 52.59 British pence and 62.24 Euro cents in afternoon trade.
