Twiggy slaps down nuclear ambitions, as energy, materials up on ASX

Steadfast on not cutting rates anytime soon, the RBA governor’s comments have done little to dampen the mood on the ASX on Friday.

Energy and materials led the ASX on Friday. Picture: NewsWire / Gaye Gerard

The ASX200 has bookended a week of recovery with a 1 per cent gain and a clean green sweep across all 11 sectors on Friday.

The benchmark closed 1.3 per cent up, tacking on 105 points to finish 7971.1, spurred on by one of Wall Street’s best sessions for the year.

On the local market, the energy and materials sectors gained 2.1 per cent each, and financials was in third with a 1.6 per cent return.

After uplifting retail data out of the US overnight, eyes were on Reserve Bank of Australia governor Michelle Bullock as she fronted a parliamentary hearing in Canberra.

Reserve Bank governor Michele Bullock fronted a parliamentary committee on Friday. Picture: NewsWire / Martin Ollman

The governor reiterated her stance that it was too early for a rates cut, and the full effect of the successive hikes had not fully washed through the economy.

“Circumstances may change, of course, and the outlook remains uncertain, but based on what the board knows at present, it doesn’t expect it will be in a position to cut rates in the near-term,” Ms Bullock said.

Nonetheless, rallies in New York set the ASX’s bearing for Friday. Commonwealth Bank, BHP, CSL, NAB, Fortescue and Woodside all gained more than 1.4 per cent respectively.

Speaking of Fortescue, Andrew Forrest greeted morning TV cameras on Friday standing in the Pilbara, dwarfed by a green hydrogen mining truck. The festivities at Christmas Creek were to mark turning the sod on a green iron project.

Our Chairman, Dr. Andrew Forrest joined Karl and Sara on the @Channel9 Today Show to celebrate the sod turn on our green iron plant, and the arrival on site of our liquid hydrogen powered truck, Europa.#everythingsbiggerinWA pic.twitter.com/K5LclZUItI

— Fortescue (@FortescueNews) August 16, 2024

In return, Fortescue gained 3 per cent for the day, finishing at $17.34, though the stock is down 13 per cent on this time last year. Twiggy took the chance to sink the boot into Peter Dutton when the cameras were rolling.

“Let’s congratulate Peter for acknowledging that we’ve got to switch off the oil and gas and diesel. I’m glad he’s got there,” Mr Forrest told Channel 9.

“But, second, nuclear is a different but very old story. It’s a bit like carbon sequestration. It’s just the next story waiting for the next idiot to come along.

On a patchy live-cross from the Pilbara, Andrew Forrest called nuclear energy-supporters idiots. Picture: NewsWire / Sharon Smith

“I’m not seeing any investors lining up to invest in nuclear because it’s an old, expensive story, and I’m seeing investors everywhere wanting to invest in renewable energy,” Mr Forrest said.

Alongside FMG, big movers in the materials sector included James Hardie Industries (+6.1 per cent to $51.99) and explorer Southern Cross Gold (up 6.9 per cent to $2.45). Southern Cross Gold floated at $0.20 in May 2022.

Guzman y Gomez gained 9 per cent on Friday, finding a new record high having fought back above its June IPO price. Picture: NewsWire / Monique Harmer

JB Hi-Fi closed with a record high of $77.39 on Friday after buying bathroom and kitchen product retailer e&s, and the payout of a special dividend alongside the end-of-year final dividend on Monday.

Results at Nine Entertainment-controlled property lister Domain showed a 27 per cent lift in profit.

Domain flagged national “for sale” listings increased 3 per cent for the year. But real estate was the only sector truly not in on the party Friday, as was Domain. Domain slipped 2.5 per cent to $3.01, down on its $5.95 high in late-2021.

The real estate sector as a whole gained 0.1 per cent for the day.