The ASX 200 gave back 71 points to 8,968 (-0.8%) as profit-taking set in across the board. Banks were mixed, with CBA and ANZ down slightly, while NAB and WBC edged higher. MQG, though, fell 1.5% after US investment banks weakened overnight, and financials generally were softer, with QBE down 0.9% and IFT off 1.7%. REITs also came under pressure, with SCG down 1.3% and VCX falling 1.5%.

In the industrials, we saw some selling after the strong gains of recent days, with WES down 1.5%, JBH off 1.6%, and TLS falling 0.6%. Healthcare stocks also gave back a little ground, with CSL down 0.1% and SIG easing 0.7%. Tech stocks, however, were slightly firmer, with XRO up 1.4% and WTC rallying 6.7%. Other industrials also slipped, with QAN down 3.0% and SGH off 2.5%.

Meanwhile, in resources, BHP fell 1.7%, and FMG was weaker, although RIO rose 1.8% following positive broker comments after yesterday’s result. Gold stocks eased on interest rate concerns, with NST down 3.3% and NEM off 1.8%. Some buying emerged in lithium stocks, with PLS up 2.7% and MIN rising 3.9% following better-than-expected results. Oil and gas stocks were steady, while uranium stocks eased slightly.

In corporate news, DMP beat expectations slightly and shorts rushed to cover, up 9.1%. BOE fell 2.5% despite meeting production guidance. ALD rose 0.2% after announcing better-than-expected earnings from its refinery, while VNT slipped 2.9% following the appointment of a new director. In economic news, building approvals rose 7.2% to 18,328, while the value of total residential building work increased 15.1%.

Asian markets were mixed, with the Nikkei 225 up 0.2%, Hong Kong down 0.4%, China off 2.1%, and Korea down 0.9%. US futures were slightly firmer, in line with fair value, with the Dow up 74 points and the Nasdaq up 105 points. European markets are set to open lower.

HIGHLIGHTS

  • Winners: DMP, SGR, WTC, MIN, PYC, PLS, GYG
  • Losers: AYA, LTR, CIA, EOS, IPX, ARU, MI6, SBM, TVN
  • Positive Sectors: Lithium. Tech.
  • Negative Sectors: Retail. Gold miners. REITs. Financials.
  • ASX 200 Hi 9026 Lo 8951
  • Big Bank Basket: Flat at $295.23 (+1.3%)
  • All-Tech Index: Flat.
  • Gold: Falls to $5802
  • Bitcoin: Higher at US$64030
  • 10-year yields: Higher at 4.98%
  • AUD: Slips to 69.53c
  • Oil up 0.7% – US Futures flat.

MARKET MOVERS

  • DMP +9.1% shorts cover on better results.
  • WTC +6.7% tech back?
  • PLS +2.7% better than expected results.
  • MIN +3.9% better than expected results.
  • GYG +2.6% Domino effect?
  • APX +10.3% charge continues.
  • TPW -5.8% sellers are back.
  • AYA -16.1% heart murmurs!
  • LTR -10.9% missed expectations.
  • EOS -8.6% continues lower.
  • ARU -7.9% rare earths under pressure.
  • SBM -7.5% quarterly.
  • Yesterday’s Hero: CRN -10.3%
  • Speculative Stock of the Day: KME +52.2% Takeover bid at 73c cash.

ECONOMIC AND OTHER NEWS

  • Building approvals – Total dwellings approved rose 7.2% to 18,328. The value of total residential building rose 15.1% to $11.75bn.
  • Chinese tech stocks plunged on Thursday, led by high-flying semiconductor names. The STAR 50 Index tumbled more than 6% to its lowest since April 30.
  • China threatens retaliation against U.S. humanoid robot ban, says it ‘severely damages’ relations.
  • China AI supplier Zhongji Innolight slips in Hong Kong debut after $6.8bn IPO.
  • Samsung Electronics second-quarter operating profit beats estimates on soaring AI chip demand.
  • Hedge funds raise bets against US-backed critical minerals companies.
  • Ex-Goldman executive awarded £1.45mn after paternity leave ‘stigma’.

And finally…..

Clarence

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