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The ASX spent much of today proving a point that has become increasingly apparent over recent weeks – investors are prepared to look through the headlines. Fresh US strikes on Iranian targets overnight initially sparked another risk-off move across global markets, sending oil higher, pushing the Aussie dollar to a two-month low and weighing on growth stocks. Yet for the third time in the past seven sessions, local equities recovered strongly from early weakness, with the ASX clawing back losses after being down more than 1% intraday.
The market’s leadership continues to evolve. While Technology and the banks remained under pressure, investors kept rotating into more defensive areas of the market including Consumer Staples, Healthcare and parts of Real Estate. Coles and Woolworths have now rallied strongly over the past week, while Healthcare had another solid day and has quietly become one of the better-performing sectors on the market after spending much of the year forgotten about.
Gold has collapsed almost 10% in four sessions, copper continues to retrace and bond markets remain relatively orderly. In other words, investors appear concerned about the inflationary implications of the conflict but are not yet convinced it will derail economic growth or corporate earnings.
- ASX 200: 8,633.20 / −20.09pts / −0.23%
- AUD/USD: 0.7007 / +0.11%
- Best sectors: Energy +1.46%, Consumer Staples +1.29%, Healthcare +1.02%
- Worst sectors: Industrials −0.22%, Financials −1.45%, IT −2.24%
- Megaport (ASX: MP1) +3.60% to $18.70 bucked the tech selloff after opening its retail entitlement offer, raising a further ~$309m as part of the broader $827m capital raising to fund its AI inference cloud strategy.
- Energy stocks outperformed as crude oil pushed toward US$95/bbl, with Woodside Energy (ASX: WDS) +1.55% to $31.52, Santos (ASX: STO) +2.02% to $8.07, Karoon Energy (ASX: KAR) +4.59% to $2.05 and Beach Energy (ASX: BPT) +2.35% to $1.09 among the strongest performers.
- Lendlease (ASX: LLC) +4.58% to $2.74 gained after appointing AustralianSuper’s Nick O’Neil as incoming CEO while reaffirming FY26 earnings guidance.
- Southern Cross Media (ASX: SXL) -4.24% to 56.5c fell sharply after downgrading FY26 earnings guidance, citing a deterioration in television advertising markets. The company also announced plans to remove up to 300 jobs and target annual cost savings of $145–150m.
- Alcoa (ASX: AAI) −8.34% to $93.90 slumped after warning of a US$45m second-quarter earnings hit from higher fuel costs linked to Middle East tensions and operational disruptions at its Pinjarra refinery.
- The pressure on gold miners intensified as bullion slid to fresh multi-month lows, with Newmont (ASX: NEM) −3.46% to $132.55, Genesis Minerals (ASX: GMD) −1.64% to $4.80, Ora Banda (ASX: OBM) −6.42% to $1.02 and Northern Star (ASX: NST) −1.19% to $18.32 all weaker. Gold stocks are now down around 16% over the past five sessions.
- Northern Star (ASX: NST) −1.19% to $18.32 also remained in focus after activist investor Elliott escalated pressure on the board, calling for a formal strategic review and broader board renewal.
- QBE Insurance (ASX: QBE) +3.67% to $24.28 outperformed after appointing Christopher Harris as an independent non-executive director, while insurers broadly continued to attract support amid the volatile macro backdrop.
- Super Retail Group (ASX: SUL) +0.73% to $12.35 rose after unveiling its new five-year “Ignite” strategy targeting mid-to-high single digit profit growth, expansion to more than 900 stores and $75m of annual cost savings by FY29.
- Wesfarmers (ASX: WES) +1.10% to $84.31 was firmer after analysts responded positively to yesterday’s strategy day, with UBS raising its price target to $84.00/share, lifting earnings forecasts and highlighting opportunities across AI, digitalisation, Health and Lithium.
- Steadfast (ASX: SDF) −2.79% to $5.23 eased after yesterday’s takeover-fuelled surge, though brokers continued to suggest the $6.00 per share proposal from Amwins and Dragoneer has a high likelihood of success.
- Larvotto Resources (ASX: LRV) -15.79% to $1.12 announced an all-scrip acquisition of Hammer Metals, creating a larger Queensland-focused copper developer while securing Glencore as a strategic shareholder via a $15m placement.
- Core Lithium (ASX: CXO) +8.33% to 26c announced plans to spin out its Northern Territory and South Australian gold assets through an IPO of Axiant Resources later this year.
- Oil (WTI): ~US$93.70/bbl / +0.7%
- Gold: ~US$4,087/oz / +0.4%
- Iron Ore: ~US$100.90/mt / −0.50%
- Asian Markets: China flat, Hong Kong −1%, Nikkei −1.5%
- Global Futures: FTSE −0.48%, S&P 500 E-Mini +0.31%, Dow E-Mini +0.21%
