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The ASX 200 bounced back strongly today, recovering almost all of yesterday’s losses as reports of a tentative 60-day ceasefire extension between the US and Iran sparked a broad risk-on rally. Falling oil prices, easing inflation concerns and lower bond yields fuelled buying across the market, with Materials, Technology and Real Estate leading gains while Energy lagged as crude slipped to five-week lows. The ASX 200 ended the week higher and posting a second consecutive monthly gain. The market embraced the prospect of a “peace dividend”, with traders increasingly pricing in a reopening of the Strait of Hormuz and reduced inflationary pressure from lower energy prices.
- ASX 200: 8,731.65 / +138.75pts / +1.61%
- AUD/USD: 0.7160 / −0.04%
- Best sectors: Materials +2.89%, REITs +1.84%, IT +1.68%
- Worst sectors: Communications +0.18%, Energy −0.14%, Utilities −0.28%
- Judo Capital (ASX: JDO) +12.23% to $1.56 surged after pricing a $750m capital-relief securitisation backed by SME loans. Citi said the transaction materially strengthens the balance sheet, improving CET1 capital and providing greater flexibility for future lending growth.
- BHP Group (ASX: BHP) +2.91% to $62.31 rallied alongside the broader mining sector as investors rotated back into cyclicals. Base metals rebounded on easing geopolitical concerns while hopes for improved global growth sentiment supported the diversified miners.
- Commonwealth Bank (ASX: CBA) +2.24% to $165.02 outperformed the major banks, helped by end-of-month rebalancing flows. Financials recovered from Thursday’s weakness, though the sector continues to lag the broader market.
- Flight Centre (ASX: FLT) +8.22% to $10.93 and Qantas (ASX: QAN) +3.17% to $9.44 rallied strongly as lower oil prices improved the outlook for airline profitability. Investors welcomed signs of easing Middle East tensions, reducing concerns around jet fuel costs and travel disruptions.
- St Barbara (ASX: SBM) +10.60%, Resolute Mining (ASX: RSG) +7.98% to $1.285, West African Resources (ASX: WAF) +7.82% to $3.17 and Perseus Mining (ASX: PRU) +6.38% to $5.17 led a sharp rebound across the gold sector as bullion recovered from Thursday’s sell-off and lower yields improved sentiment toward precious metals.
- Vulcan Energy (ASX: VUL) +9.62% to $3.99, IGO (ASX: IGO) +3.57% to $9.58 and Pilbara Minerals (ASX: PLS) +2.54% to $6.46 continued the recent lithium recovery as lithium carbonate and spodumene prices moved higher again overnight.
- SiteMinder (ASX: SDR) +6.71% to $3.50 extended gains from yesterday’s following yesterday’s partnership announcement with Mews, combined with software stocks broadly benefiting from lower bond yields and improving risk appetite.
- DroneShield (ASX: DRO) +6.27% to $3.39 and Electro Optic Systems (ASX: EOS) +16.20% to $11.13 rallied as defence names gained favour following reports the Trump administration is considering funding initiatives to boost domestic drone manufacturing.
- On the downside, IDP Education (ASX: IEL) −16.17% to $2.23 slumped to fresh lows after Macquarie downgraded the stock to Underperform and cut its price target by more than 50%, citing ongoing visa headwinds and foreign exchange pressures.
- Champion Iron (ASX: CIA) −6.90% to $4.45 weakened following broker downgrades after its FY26 result, while Dexus (ASX: DXS) −5.40% to $5.61 fell after losing a court challenge relating to its stake in Australia Pacific Airports Corporation.
- Oil (WTI): ~US$88.60/barrel −0.3% in our session
- Gold: US$4,524/oz +0.6%
- Iron Ore: ~US$105.30/mt +0.1%
- Asian Markets: China −0.7%, Hong Kong +0.6%, Nikkei +3%
- Global Futures: S&P 500 E-Mini +0.04%, Dow E-Mini +0.04%, FTSE −0.05%
