Gains in Mining Sector Cause Australian Shares to Jump

Last week saw Australian shares rise overall by over 1%, with the largest gainer among them being Bingo Industries, a waste management firm, which received an acquisition offer. Financial and mining stocks also recorded gains, after recording sharp losses in the previous session.

While the benchmark on Monday of last week had closed 0.8% lower, by 0208 GMT, the S&P/ASX 200 index had increased by 1.2% at 6742.60.

After a private equity company made a $1.76 billion dollar bid for Bingo Industries, the firm rose 23.7%; the play equates to roughly A$2.29 billion.

Apart from this, Rio Tinto Plc (NYSE: RIO), a leading global mining corporation announced a 2.4% growth in its fourth-quarter shipments of iron ore, which prompted a 0.7% growth in the firm’s shares. This comes a day after reports showed that the economy of China was among the few that grew globally in 2020.

Rio Tinto stated that the industrial activity in China was currently at the pre-Covid-19 levels. The growth in the country’s fourth quarter seems to have made all the difference. This trend may benefit miners and investors who are looking to the China, which they regard as a top export destination, to help stimulate growth across the region as economies all around the world struggle to recover post-coronavirus.

BHP Group, the global leading resources firm, gained roughly 1%, following gains in the broader mining sector. The company recently released its operational review for the second half of 2020.

In other news, financials grew by 1.3% with the leading gains among the nation’s four largest banks being led by Westpac Banking Corp which rose 2.4%. A market analyst at CommSec, James Tao, explained that most of the early movement seemed to be a bounce back from Monday’s losses, with the lack of any new news on the domestic fight against the coronavirus together with the absence of the direction from American markets both playing a role in the market.

While it’s not a component of the ASX200, Tyro Payments shares grew by roughly 25%, with the payments processor expecting to resolve downtimes that have troubled its terminal fleet from January, in addition to causing almost a one-third decline in the price of the company’s shares. Last week, the company also turned down a short seller report.

Over in New Zealand, the benchmark NZX 50/S&P index decreased by 0.3%, which is roughly 42.95 points. This was mainly influenced by healthcare and utility stocks. The benchmark closed the session at 12881.31.

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