The ASX 200 closed up 120 points at 8,844, a gain of 1.4%..Banks led the charge as pressure on interest rate expectations eased, with CBA up 2.4%, ANZ up 1.4%, and MQG finding a few buyers, rising 0.6% as well. Insurers QBE, SUN and IAG all eased following a broker downgrade. The Big Bank Basket rose to $274.54 (1.4%). REITs also firmed, with SGP up 1.3% and CHC gaining 1.8%, although GMG continued to struggle as data centre-related stocks remain under pressure.
The industrial sector also had a good session, with WES recovering from yesterday’s losses. JBH pushed higher, while WOW and COL also found some buyers. The tech sector was modestly stronger, with REA up 2.0% and XRO gaining 1.4%, while TLS was little changed. Healthcare was another winning sector, with CSL up 3.5% and RMD pushing higher alongside SIG.
Resources were where the real action was. Gold stocks surged on the back of a modest rise in the gold price and a solid round of quarterly production reports, with most companies tracking in line with guidance. NST gained 11.8% following increased agitation from Elliott Investment Management. EVN rose 8.8%, while the standout performer was GMD, which surged 16.7% after strong quarterly production numbers. We also saw buying in the iron ore sector, with BHP up 1.6%, although FMG fell 3.2% following developments out of China.
Lithium stocks returned to favour, with PLS up 2.0% and MIN rising 2.1%, while oil and gas stocks eased, with WDS lower. Uranium stocks finished the day mixed.
In corporate news, PXA fell 21.3% after the NSW regulator announced changes, SUN also fell after warning of lower growth in gross written premiums. VAU popped 8.1% after it announced its June quarter production. Nothing in the economic news today.
Asian markets – Kospi up 6%, Japan up 1.4% and China up 0.7% – US futures – DJ up 123 Nasdaq up 321.
HIGHLIGHTS
- Winners: GMD, CYL, NST, TVN, CMM, NST, CXO, EVN
- Losers: PXA, OCL, MAQ, EIQ, PYC, IPG, SUN
- Positive Sectors: Gold miners. Banks. Tech. Healthcare.
- Negative Sectors: Insurers. Datra centres.
- ASX 200 Hi 8854 Lo 8751 – Up 0.9% for the week.
- Big Bank Basket: Rallies to $274.54 (+1.1%)
- All-Tech Index: Up 1.0%.
- Gold: Jumps to $6005
- Bitcoin: Higher at US$61615
- 10-year yields: Lower at 4.79%
- AUD: Better at 69.47c
- Oil up 0.6%
MARKET MOVERS
- CYL +19.2% production update.
- GMD +16.7% quarterly results
- CXO +9.4% lithium bounce.
- DTR +7.7% US court developments
- GMD +16.7% quarterly.
- CMM +10.1% Nevada gold deal.
- TLG +33.3% first anode sale.
- CHN +11.3% solid bounce.
- ATR +6.4% director’s interest.
- PXA -21.3% NSW changes.
- OCL -13.5% reverse again.
- MAQ -6.0% data centre pressure.
- SUN -3.7% warning on GWP.
- EIQ -5.7% profit taking.
- QOR -11.1% tech under pressure.
- KMD -5.8% share consolidation.
- Speculative Stock of the Day: TLG +33.3% first anode sales.
ECONOMIC AND OTHER NEWS
- US markets closed tonight. Futures still open.
- Kopsi up 6.0%, Europe opening better.
- The SEMI industry association warned the Trump administration that government attempts to address the global memory chip shortage by influencing prices or production capacity would worsen the supply squeeze.
- Anthropic moves to close loopholes that allow Chinese access to Claude
- Surging Wall Street profit forecasts fuel fears of ‘earnings bubble’
- Iran readies mega-funeral for slain supreme leader.
- Down the back of the sofa perhaps? UK finds lost US Declaration of Independence copy after 250 years.
- Canada unveils plans for new oil pipeline to break dependence on US.
- Heat dome’ over eastern US sends electricity prices soaring.
- Citi says oil may fall to $60 as Hormuz shock fades.
And finally….
I just saw Beyonce on her way to Wimbledon to watch the tennis.
She’s going to see all the ladies singles, all the ladies singles…
Clarence
XXXX