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The ASX 200 closed down 21 points at 8604 (0.2%), well off its lows for the day, with most sectors rallying throughout the session and the banking sector staging a turnaround. CBA fell 0.3%, with the Big Bank Basket easing only slightly to $265.42 (0.4%). Financials were generally firm, with MQG up 0.7%, while the insurance sector also performed well, led by QBE up 0.9% and MPL higher. REITs enjoyed a solid session, with GMG up 0.3% and SCG rising 1.6%. TLS also had a strong day, gaining 2.2%, although REA was a disappointment, falling heavily. Both WOW and COL posted gains as defensive buying in the supermarket sector helped push them higher. Retail stocks were also in demand, led by WES up 1.3% and APE rising 4.3%.

Healthcare was another bright spot, with CSL recovering a further 1.6% and RMD also posting gains. Elsewhere, technology stocks remained under pressure but recovered from their lows, with XRO down 1.1% and WTC off 4.6%, while the All-Tech Index fell 0.1%.

It was a different story in resources, although the sector also bounced from early lows. BHP fell 1.9% and RIO dropped 1.8% as iron ore and copper prices weakened. Gold stocks were also under pressure, with NST down3.3% and NEM lower. Lithium stocks slipped away, with MIN falling 2.6% and LTR off 3.3%. In energy, WDS rose alongside STO, although gains were relatively muted. Uranium stocks came under heavy pressure, with PDN dropping 8.8% and DYL down 7.6% as short sellers gained the upper hand.

In corporate news, OML had a good day, up 9.6%, after receiving yet another NBIO, this time from Bain Capital. QUB rose 0.4% after the PNG competition regulator backed the company’s planned takeover by Macquarie. On the economic front, NAB is now saying the next move in local interest rates is likely to be a cut. Business confidence rebounded as price pressures softened, according to the NAB Business Survey. However, Australian consumer confidence slipped back towards record lows, with the Melbourne Institute-Westpac Consumer Sentiment Index falling to 80.6, one of the lowest readings in its history.

Asian markets mixed. Japan up 2.1%, Hong Kong up 0.1%, and China up 0.8%. South Korea jumps 8%.

US futures: Dow up 8 and Nasdaq up 170. Oil down 1.5%. Europe opening slightly easier.

HIGHLIGHTS

  • Winners: OML, ZIP, IEL, TPW, HLI, RDX, ELS
  • Losers: CHN, TVN, EMR, PDN, CRN, BMN, AMI
  • Positive Sectors: Healthcare. Insurers. Utilities. Supermarkets.
  • Negative Sectors: Resources. Tech.
  • ASX 200 Hi 8617 Lo 8491 Same sectors gaining as Friday.
  • Big Bank Basket: Lower at $265.42 (0.4%)
  • All-Tech Index: Off 0.1%
  • Gold: Slips to $6155
  • Bitcoin: Rises to US$63379
  • 10-year yields: Higher at 4.96%
  • AUD: Lower at 70.50c.

MARKET MOVERS

  • OML +9.6% another NBIO.
  • ZIP +5.9% US economy.
  • IEL +5.3% broker upgrade.
  • GQG +4.7% US tech exposure.
  • BBT +6.3% buyback update.
  • AGI -6.9% reverses Friday’s gains.
  • PDN -8.8% shorts back in charge.
  • AMI -8.2% peak process plant update.
  • Yesterday’s Hero: DXN -20%
  • Speculative Stock of the Day: T3D +195.5% Investment in Firmus and AI product development.

ECONOMIC AND OTHER NEWS

  • Data from more than 200,000 SMEs, showed activity rose 0.6% in the March quarter and 4.1 per cent over the year, but growth slowed late in the period as businesses faced higher borrowing costs, wages, insurance and utility expenses alongside softer spending.
  • National Australia Bank has scrapped its forecast for an August interest rate rise, saying the Reserve Bank of Australia’s next move is now more likely to be a cut.
  • Australian consumer confidence has fallen back towards record lows, with the Melbourne Westpac Institute Consumer Sentiment Index dropping to 80.6, one of the lowest readings in its history.
  • Chinese investment flows into Australia lifted sharply in 2025 to levels not seen since 2013, driven by a rebound in portfolio inflows, according to Deutsche Bank.
  • UBS says embattled biotech CSL may be past the worst of its earnings pressure, with the current financial year likely to mark a low point for profitability before a modest recovery emerges.
  • Bank of America Securities advises investors to exercise caution regarding US stocks due to an increasing number of “bear market signposts” pointing to an approaching top.
  • Bank of Japan to lift rates to 1% at its June meeting.
  • GSK in talks to buy cancer biotech Nuvalent for more than $9bn.
  • Chinese exports climb as AI boom fuels trade.
  • Renault to cap defence revenue at 5% as it pushes into drone making.

And finally….

Clarence

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