Market on the Rise: ASX Reports 0.8% Climb to 9-Month High

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Hopping Upward – ASX200 reached an intra-day high of 6,191.10 in the trading session, representing a 0.8% increase from its previous close and highest since July.

On Monday in Australia, shares reached the highest level they had experienced in nine months as the ASX rose 0.8%, despite a renewed effort by China to regulate commodity prices and put pressure on iron ore producers.

After China’s National Development and Reform Commission promised to enforce strict measures to inhibit the rapid growth of Australia’s primary export, iron ore prices plummeted.

Stocks rose impressively for the eighth time in nine sessions, with a 60.1 point increase to 7388.2 and All Ordinaries climbing 0.9 per cent to an impressive 7605!

“The market has been driven by a strong performance from the major banks, some of whom have posted their best gains in more than three years,” said Bell Direct equities analyst Julia Lee.

“We’ve seen iron ore prices drop sharply as China takes measures to regulate the commodity and reduce speculation, but this doesn’t appear to harm the market.”

The ASX-listed mining stocks suffered a significant blow as Fortescue Metals Group tumbled 2.1% to $22.33 and Champion Iron slumped 2.2% down to $7.51, respectively. In comparison, BHP Group displayed a slight growth of 0.1%, reaching the $49.69 per share value in the end.

Despite Baby Bunting’s 6.6% growth in sales to $254.9 million from its previous year, its share prices took a plunging dive of 11%, settling at $2.68 due to thinner profit margins than expected for the first half of 2020. The company’s gross profit margin declined by 2.1 percentage points, settling at 37.2%. 

The organisation predicts an annual net profit of between $21.5 million and $24 million for the fiscal year 2023; its full-year gross profit margin is estimated to range from 38% to 39%.

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