That Future Fund had better hurry and take advantage of these new market highs while it can. Yesterday Rio Tinto (ASX:RIO) became the first Australian stock to break the AU$100 barrier in several decades in intra-day trading. It couldn’t quite get over the line, though, and closed at AU$99.99.
There’s nothing especially significant about AU$100. Nominal share prices don’t necessarily tell you anything important about a stock. Things like its market capitalisation, earnings per share, and its valuation are a lot more important. But we are vain things, us human beings. And there’s some prestige attached to big round numbers.
One other note on Rio reaching AU$100. The other two likely candidates to reach the mark were Macquarie Bank (ASX:MBL) and CSL (ASX:CSL), the vaccine and plasma company. Not that it means anything…but it’s interesting to note a miner reached the mark before a financial stock or a growth stock. Is iron ore a fundamentally better-or more understandable asset-than an airport or blood? Maybe this means Rio should split to make its shares nominally cheaper. And then again, a strong share price is useful as currency in today’s buyout-driven boom.
Markets and Money