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The ASX 200 finished higher today, extending the recent recovery, although the market did give back some earlier gains as the session progressed. The index rallied through the morning as investors balanced improving risk sentiment against the continued uncertainty surrounding the Middle East conflict and the looming US deadline on Iran. At its peak, the market peered over the 8800 level, but trimmed gains into the afternoon as US futures softened, leaving the local bourse to finish 70pts off its high.
The rebound in equities has been driven largely by hopes the current conflict may ultimately de-escalate, with markets increasingly conditioned to expect last-minute diplomatic off-ramps despite the increasingly aggressive rhetoric around the Strait of Hormuz. Investors trimmed gains into the close, highlighting ongoing caution, but the broader “buy the dip” mentality that has emerged during recent volatility continues to underpin risk assets, at least for now.
- ASX 200: 8,728.80 / +149.31pts / +1.74%.
- AUD/USD: 0.6921 / flat / +0.04%.
- Best sectors: IT +3.98%, Materials +2.61%, Financials +2.16%.
- Worst sectors: Consumer Staples +0.09%, Real Estate +0.20%, Industrials +0.36%.
- Technology stocks led the market higher, supported by strong gains in data centre operator NextDC (ASX: NXT) +11.90%, which surged after announcing a $1bn wholesale hybrid securities offering backed by Quebec-based pension fund La Caisse.
- Other tech names also edged higher with WiseTech Global (ASX: WTC) +3.38% and Xero (ASX: XRO) +1.74% posting solid sessions.
- Resources were also firm, helped by gains across both bulk miners and gold names — BHP (ASX: BHP) +3.30% led the way as iron ore firmed, while Newmont (ASX: NEM) +2.64% climbed as bullion firmed through the weekend.
- Energy stocks gained as crude prices pushed higher amid continued disruption to global supply routes — Woodside Energy (ASX: WDS) +2.49%, Santos (ASX: STO) +0.12%, and Karoon Energy (ASX: KAR) +2.83% all finished firmer.
- Banks also provided a lift with the Big Four all higher — Westpac (ASX: WBC) +2.38%, Commonwealth Bank (ASX: CBA) +2.40%, National Australia Bank (ASX: NAB) +2.58%, and ANZ (ASX: ANZ) +1.72% all surged through the session.
- Guzman y Gomez (ASX: GYG) +18.55% surged after reporting third-quarter network sales of $345.9 million, +19.5% year-on-year, beating expectations, looked like a case of short-covering.
- Bank of Queensland (ASX: BOQ) +6.91% jumped after announcing a strategic capital partnership with Challenger, including a $3.7bn whole-of-loan sale and that will allow the bank to return roughly $300 million to shareholders via buybacks and a special dividend.
- Reece (ASX: REH) +4.11% moved higher after appointing former Treasury Wine Estates (ASX: TWE) +1.34% CEO Tim Ford as lead independent director.
- CSL (ASX: CSL) +0.99% edged up after confirming that most of its US product sales would not be subject to Trump’s tariffs, while tariffs on its Fluad vaccine manufactured in the UK are expected to fall from 10% to zero.
- DigiCo Infrastructure REIT (ASX: DGT) −1.72% slipped after withdrawing its development application for a California data centre project.
- a2 Milk (ASX: A2M) −1.92% eased after agreeing to pay $62m to settle shareholder class actions.
- Oil: Rose about +2.5% around $US115/barrel (WTI)
- Gold: was flat during our time zone, trading $US4,650/oz around our close.
- Asian Markets: China +0.10%, Hong Kong −0.7% and the Nikkei −0.1%.
- Global Futures: S&P 500 E-Mini −0.46%, Dow E-Mini −0.26%, FTSE +0.24%.
