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The ASX finished lower, though it was much worse early on in the session. The war in the Middle East continues to dominate sentiment, with the market now down ~9% from the start of March, flirting with technical ‘correction’ territory. Despite the heavy macro backdrop, the familiar buy-the-dip mentality was still evident as bargain hunters emerged. The main board was down 165pts this morning before rallying ~100pts off the 11am low, with the majority of stocks finishing near session highs.
- ASX 200: 8,365.90 / −62.55pts / −0.74%
- AUD/USD: 0.6976 /−0.67%
- Best sectors: Utilities +1.46%, Energy +1.24%, Consumer Disc. +1.10%
- Worst sectors: IT −0.92%, REITs −1.20%, Materials −2.40%
- Consumer electronics retailer JB Hi-Fi (JBH) +2.06% traded higher, joining the broader lift across the discretionary retail space as bond yields drifted lower as the day progressed.
- Energy names were mixed as crude prices softened during our trade, though the sector remained supported with Woodside Energy (WDS) +2.20%, Santos (STO) +0.88%, Ampol (ALD) +1.00% and Viva Energy (VEA) +0.85% all higher.
- Gold miners were the main drag as bullion extended its sharp pullback.
- Catalyst Metals (CYL) −14.44%, Ora Banda Mining (OBM) −11.02%, Northern Star (NST) −6.97% and Newmont (NEM) −7.45% all slumped.
- The major banks also drifted lower, with Commonwealth Bank (CBA) −0.79%, ANZ (ANZ) −0.90%, Westpac (WBC) −0.86% and National Australia Bank (NAB) −1.82% all finishing in the red.
- Medibank (MPL) +2.38% gained despite losing a legal battle tied to its 2022 cyberattack, with the Federal Court refusing the insurer leave to appeal over documents related to the incident.
- SGH (SGH) +0.20% was flat after appointing Matt McKenzie as chief executive of its Boral building products division.
- Premier Investments (PMV) +5.68% also advanced after Jarden upgraded the stock to Overweight from Neutral after continued momentum in the Peter Alexander brand.
- Buy-now-pay-later group Humm (HUM) −5.52% fell after confirming its independent board committee had granted due diligence to Credit Corp as takeover discussions progress.
- Media group ARN Media (A1N) −4.55% declined after radio host Kyle Sandilands launched legal action against the company over the cancellation of his $100mn contract.
- Oil rose +0.5% around $US98.78/barrel.
- Gold was hit again during our time zone, down another $US123/oz to be $4,368/oz around our close.
- Asian markets were weak: China −2.2%, Hong Kong −3.2% and the Nikkei −3.1%.
- Global Futures: S&P 500 E-Mini −0.32%, Dow E-Mini −0.25%, FTSE −1.05%
