- Markets @ Midday: Listen here at lunchtime or find all Market Matters Podcasts on Spotify.
The ASX finished little changed on Thursday, recovering from a weak open with the index down -0.7% in early trade, as a bounce in the banks offset broad-based weakness across the local bourse. The market was digesting another bout of volatility in global technology stocks, as concerns around AI infrastructure spending weighed on semiconductor names across Asia and the US overnight. Eight of the eleven sectors closed lower, though Financials proved the standout performer following a broker upgrade for NAB, while strength across gold miners helped underpin the Materials sector.
- ASX 200: +1.59 pts / +0.02% / 8,724.50
- AUD/USD: US$0.6894 / +0.01%
- Best sectors: Financials +1.17%, Healthcare +0.28%, Materials -0.02%
- Worst sectors: Utilities -3.58%, Consumer Discretionary -2.17%, Information Technology -1.14%
- Northern Star (ASX: NST) +5.1% to $19.83 led the large-cap miners higher after appointing Glencore executive Suresh Vadnagra as its new CEO while also reporting FY26 gold sales above revised guidance at 1.54Moz. Cash and bullion increased to $1.26bn with no corporate debt, reinforcing confidence in the company’s growth outlook.
- National Australia Bank (ASX: NAB) +3.4% to $38.41 outperformed after Bank of America upgraded the stock to Buy with a $42.50 price target. The upgrade sparked buying across the banking sector, with Westpac (ASX: WBC) +2.19% to $35.46, ANZ (ASX: ANZ) +0.93% to $34.79 and Commonwealth Bank (ASX: CBA) +0.26% to $161.14 also finishing higher.
- Origin Energy (ASX: ORG) -4.1% to $10.48 was among the weakest performers after UBS reduced its price target and lowered near-term oil and LNG price forecasts.
- Perpetual (ASX: PPT) +2.2% to $18.73 extended Wednesday’s takeover-driven gains after Citi suggested the board’s rejection of EQT’s $21.64 per share proposal could encourage a higher offer.
- Electro Optic Systems (ASX: EOS) +1.6% to $10.01 gained after securing approximately $38m of new defence contracts in the Middle East, including a $23m naval remote weapon systems order and a £8m counter-drone contract.
- Megaport (ASX: MP1) -5.2% to $19.75 fell after completing the retail component of its $827m entitlement offer, raising approximately $308m from retail shareholders at $14.30 per share.
- Wesfarmers (ASX: WES) -3.3% to $86.85 weakened after Goldman Sachs downgraded the stock to Sell, arguing recent share price strength had left valuations stretched and risk/reward less attractive.
- Coles (ASX: COL) -1.6% to $23.10 extended yesterday’s losses as investors continued questioning the strategic merits of a potential Greencross acquisition. Citi argued management should remain focused on its core supermarket operations rather than pursuing a large acquisition in the increasingly competitive pet care market.
- South32 (ASX: S32) -3.5% to $4.16 gave back some of yesterday’s near-10% rally as investors digested its aluminium asset sale to Alcoa.
- IperionX (ASX: IPX) -3.7% to $4.19 eased after completing its acquisition of the Camden critical minerals and infrastructure assets in Tennessee, adjacent to its Titan project.
- Kelsian (ASX: KLS) -2.3% to $4.35 slipped despite securing a seven-year Auckland ferry contract worth NZ$101m and agreeing to acquire local operator Belaire Ferries, with investors focused on the capital investment required over coming years.
- Oil (WTI): ~US$67.80/bbl / -1.2%
- Gold: ~US$4,067/oz / +0.9%
- Iron Ore: ~US$98.90/mt / +0.9%
- Asian Markets: China -1.5%, Hong Kong +0.8%, Nikkei −2.2%
- Global Futures: FTSE −0.18%, S&P 500 E-Mini +0.25%, Dow E-Mini +0.07%
