Published On: November 21st, 2023
Microsoft announced today that former OpenAI CEO Sam Altman will head a new AI research team. The announcement follows Microsoft’s attempts to preserve its collaboration with OpenAI. This move reinforces Microsoft’s commitment of AUD 5 billion to digitalising Australian public services, an exercise led by Microsoft Australia CEO Steven Worrall.
The Wall Street witnessed a surge in technology stocks, including megacap stocks such as Apple and Nvidia. The Dow Jones, S&P, and Nasdaq also surged to +0.6%, +0.7%, and +1.1%, respectively.
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Mining stocks drive the ASX index
After this massive update, the ASX 200 jumped by 19.80 points (0.28%) to 7078.20 points. The Australian dollar rose by 0.18% to USD 0.6568. Mining and technology stocks are the primary drivers of this higher price.
Microsoft Australia CEO Steven Worrall recently commented on working with the Digital Transformation Agency to promote industry digitalisation. Hence, the move by Microsoft is bound to have far-reaching effects on the Australian mining sector.
This was reflected today when Fortescue Metals Group Limited (ASX: FMG), a leading iron-ore producer involved in green energy, improved by AUD 0.169 (0.671%) to AUD 25.470. Meanwhile, Wildcat Resources Limited (ASX: WC8), an Australian-based mining exploration company headquartered in Perth, grew by AUD 0.050 (5.917%) to AUD 0.895.
Conversely, Alpha HPA Limited (ASX: A4N), an Australian company based in New South Wales that is involved in alumina refining and the production of high-purity aluminium materials, saw its stock price fall by AUD 0.015 (1.734%) to AUD 0.85.
Technology stocks fall
Surprisingly, technology stocks such as AI-Media Technologies Limited (ASX: AIM), a global Australian organisation that provides captioning services to the top brands, dropped by AUD 0.010 (-3.571%) to AUD 0.270. Aristocrat Leisure Limited (ASX: ALL), a leading gaming content company, followed this trend, falling from AUD 0.310 (-0.754%) to AUD 40.750.
Banking and Investment Sectors Fluctuate
Investment companies with a comprehensive pool of investments bore the brunt of the fluctuations with the rise and share prices in various sectors. The share price of Washington H Soul Pattinson & Company Limited (ASX: SOL), an investment company with a rich portfolio comprising multiple assets, such as financial services, telecommunications, building materials, education, and resources, fell by AUD 0.119 (-0.363%) to AUD 32.850. Mirroring this, Cleanaway Waste Management Limited (ASX: CWY), an Australian company offering comprehensive waste management services, saw a drop in its share price by AUD 0.020 (-0.781%) to AUD 2.540.
Meanwhile, working on a renewed goal of integrating AI in banking, Westpac Banking Corporation (ASX: WBC), an Australian multinational banking and financial services organisation, improved its share price by AUD 0.030 (0.141%) to reach AUD 21.250.
While the Australian share market has been known to reflect the variations in the US share markets, certain factors specific to Australia, such as localised consumer requirements, governmental policies, technological outreach, and environmental restrictions, influence the final ASX index. Nevertheless, the leadership changes brought in by Microsoft are expected to reflect positively in its ventures in Australia, as Microsoft Australia CEO Steven Worrall commences his role to lead the digital transformation and AI integration with the Digital Transformation Agency.
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