The S&P/ASX 200 Index rose by 1.4% on Friday, closing at 8,761, and achieving a new all-time high, driven by significant increases in mining stock prices owing to rising commodity values. Over the week, the index saw a 2.1% rise, marking its most substantial gain in nearly three months. This upward trend was bolstered by growing expectations of a potential interest rate cut by the Reserve Bank of Australia (RBA) in August, prompted by indicators of economic deceleration. Global sentiment was further buoyed by positive U.S. economic data and strong corporate earnings.
In specific company news, BHP Group saw its shares increase by 3% following the announcement of robust annual results, including record copper output and strong iron ore production, which contributed to a 2.2% increase in the mining index, its highest level since February 24. This advance occurred despite BHP's disclosure of delays and potential cost overruns of up to $1.7 billion at its potash project in Canada. Additionally, Mineral Resources and Pilbara Minerals experienced considerable gains, with their shares rising by 5% and 8.1%, respectively, as lithium prices spiked after a production stoppage in China. Furthermore, biotech leader CSL rose by 3.8% following an upgrade from UBS, propelling healthcare stocks to their highest levels since February 27.
