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The ASX 200 closed down 44 pts at 8,797 as US futures weakened and Asian technology stocks were hit hard. Down 10pts for the week. Our market saw both the banks and resources come under pressure. The banks gave up ground, with CBA down 0.8% and WBC falling 0.2%. The Big Bank Basket fell to $284.25 (-0.5%) with a late rally helping. Insurers, however, held their ground, while other financials also performed reasonably well, with AMP rising for the second day in a row.

Elsewhere, defensives in the industrial sector held firm, with TLS up 2.7% despite CEO Vicki Brady facing lawmakers in Canberra. WES also gained 0.9%, while in healthcare CSL edged higher and RMD rose 1.5%.

Technology stocks were mixed. XRO gained 0.9% and WTC was little changed, but the data centre sector remained under pressure, with NXT falling another X%. MP1 had another horrible session, down 8.5%, while AI-related stocks were sold heavily. EIQ fell 5.7% and WBT tumbled nearly 10.5%. In fact, anything with a Vegas AI connection was under pressure today. Resources were once again the weak link. BHP continued to slide following its quarterly result, falling 2.7%. RIO also eased 2.4%, while FMG held up, but only just. Lithium stocks were once again under pressure, with PLS down 3.1% and MIN falling 2.6%. Gold miners also suffered despite bullion prices rising in Asian trade, with NST and EVN both down over 4%. Oil and gas stocks bucked the trend, with WDS up 3.3% and STO gaining 1.9%, although coal stocks failed to fire.

There was little of note on the corporate front. ZIP fell 5.1% after announcing it would exit its New Zealand business. PRU delivered a stronger-than-expected quarterly update. SKC climbed after announcing the sale of investment properties in Auckland. COL walked away from its proposed acquisition of Greencross from TPG Capital, while RRL fell 8.4% after issuing a softer FY27 outlook.

In economic news, Westpac Chief Economist Luci Ellis warned that the current AI boom could face a correction if commercial returns fail to justify the lofty valuations.

Asian markets were slammed, Nikkei 225 down 4.6%, HK down 2.3% and China down 3.9% – Korea closed for a holiday.

US futures down – Dow down 403 and Nasdaq down 465. Oil up 0.9%. European markets set to fall 1%

HIGHLIGHTS

  • Winners: AMP, SKC, BXB, DMP, WDS, AMC, COL
  • Losers: AXQ, TVN, SRL, 4DX, EUR, MSB, WBT
  • Positive Sectors: Oil and gas. REITs.
  • Negative Sectors: Banks. Iron ore. Gold miners. Data centres.
  • ASX 200 Hi 8820 Lo 8758 Down 10 pts for the week.
  • Big Bank Basket: Falls to $285.73(-0.5%)
  • All-Tech Index: Down 1.7%.
  • Gold: Falls to $5714
  • Bitcoin: Falls to US$62831
  • 10-year yields: Steady at 4.88%
  • AUD: Down at 69.76c
  • Oil down. US Futures down. European futures down 1%.  

MARKET MOVERS

  • AMP +6.3% kicks again.
  • WDS +3.3% crude rises.
  • GQG +1.5% less tech exposure.
  • DMP +2.5% change in substantial holdings.
  • FWD +6.0% becoming a substantial shareholder.
  • AXQ -13.6% scheme implementation.
  • TVN -14.1% community forum for Speewah.
  • SRL -14.5% profit taking.
  • 4DX -15.6% volatility continues.
  • WBT -10.4% smacked down again.
  • INR -11.1% lithium woes.
  • SKS -10.8% data centre exposure.
  • Yesterday’s Hero: JNS -1.7%
  • Speculative Stock of the Day: TAT +25.0%

ECONOMIC AND OTHER NEWS

  • Asian tech meltdown. Nikkei 225 takes a hit. South Korea closed.
  • Softbank fell over 6%. TSMC down over 6%.
  • Volvo results. Safe.
  • Trump accuses China of election interference.
  • World’s largest olive oil company says a period of unprecedented volatility has “definitively” given way to more stable market conditions.
  • Iran warns OF Hormuz ‘red line’.
  • SpaceX aborts latest Starship flight.
  • Modi steps up India’s hunt for uranium and critical minerals.
  • Xi sets out China’s goal to be global AI leader.
  • Predictions markets go nuts as Trump Media to sell high-speed access to president’s social media posts.
  • Zelenskyy government plunged into turmoil after defence minister fired.
  • ‘The Odyssey’ leads the box office charge for a record 2026.

And finally…

Clarence

XXX