Australian share market edges higher despite mining losses

Despite sharp losses in mining stocks, the Aussie share market closed higher on Tuesday.

The Australian share market closed higher Tuesday as a late rally in financial stocks offset sharp losses in the materials sector.

The S & P/ASX200 gained just 0.1 per cent, or 7.8 points, to reach 6,780.7. The All Ordinaries also rose, adding 7.3 points to 6,967.5.

On the benchmark, eight of 11 industry sectors finished in the green, led by gains in real estate and consumer stocks, up 1.1 per cent and 0.8 per cent, respectively.

Meanwhile, miners were the worst performers on the benchmark, falling 1.1 per cent, with iron ore miners tracking a fall in the commodity price.

Singapore iron ore futures sank 0.2 per cent for the December contract. Picture: supplied.

Singapore iron ore futures for the December contract fell 0.2 per cent to $US118.95 a tonne. Sector heavyweight Rio Tinto lost 0.6 per cent to $117.58, BHP dropped 1.35 per cent to $44.50, and Minres plunged 4.05 per cent to $57.76.

In company news, shares in Inghams Group soared 7.9 per cent to $3.68, the highest since October 2021 after the poultry producer announced a half yearly statutory earnings of $247 million before interest, tax and amortisation in the first half of FY2024

Mining support firm Chrysos jumped 11.9 per cent to $6.85 on Tuesday after the company entered into partnership with Canadian miner Barrick Gold and geochemical laboratory services provider MSALABS.

Origin Energy, which is currently in the process of ratifying a $15.35bn takeover bid from a Brookfield-led consortium, fell after AustralianSuper, which owns a 13.68 per cent stake in Origin, announced it would vote against the deal. Shares dropped 0.4 per cent to $9.13.

Treasury Wine Estates, owner of Penfolds, announced its plans to acquire Daou Vineyards based in California. Picture: Supplied

Battery minerals miner Liontown Resources sank 1.8 per cent to $1.61 after revealing its Kathleen Valley project is over 50 per cent complete.

Treasury Wine Estates is in a trading halt after it announced it has entered into arrangements to acquire California-based Daou Vineyards in a deal worth up to $US1 billion ($1.6 billion).

Australian 10-year bond yields traded at $95 on Tuesday morning, implying a yield of 5 per cent, the highest since 2011.

In a note to clients, economists at UBS delayed its forecast for a rate cut until November 2024 and noted the inflationary impact of strong wages growth feeding into inflation.

“Wages policy is adding to inflation, with the award wage increasing by 5.75 per cent in July 2023, and we expect another large increase of 4 per cent plus in 2024,” the note read.