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The ASX opened with a bang this morning hitting a 8051 high early on – up ~80pts, taking the rally from the April 7 low to +882pts/12.3%. However, profit taking emerged from mid-morning with the index losing ~70% of the morning gains.
As we suggested in Macro Monday, while we continue to anticipate the market will climb through 2025, we are conscious that following the last few weeks’ strong recovery, a period of consolidation feels overdue, which coincides with the average price action of the ASX200 over the last decade: Following a strong April, May & June have combined to deliver a net -0.26% return.
- The ASX200 added+28ts/+0.36% closing at 7997
- Energy (+1.6%), IT (+1.4%) and Consumer Discretionary (+1.3%) led the line.
- Materials (-0.60%) the only sector lower, while Industrials (+0.02%) and Financials (+0.3%) underwhelmed.
- The index heavyweights BHP -1.05% and CBA -1.14% took 15 points from the index alone.
- ANZ Bank (ANZ) +1.63% rose after Citigroup upgraded the stock from sell to neutral with a $27.50 price target.
- Telix Pharmaceuticals (TLX) -6.58% announced its new drug application for brain cancer imaging (Pixclara) was rejected by the Federal Drug Administration (FDA).
- Lynas (LYC) +3.26% posted mixed quarterly production figures, though management alluded to premium offtake contracts amid current global supply issues.
- Gold Road (GOR) -1.14% released a decent third quarter result, reaffirming FY25 production guidance of 325,000-355,000 ounces of gold.
- Flight Centre (FLT) +1.04% provided a negative trading update, with US uncertainty weighing on their FY25 outlook. New guidance of $300-$335m (was $365-$405m) implies FY25 yoy decline of -1% at the midpoint. Shares had been weak ahead of the news.
- Perseus Mining (PRU) -2.71% fell with the weaker gold sector though announced it is proceeding with the Final Investment Decision (FID) for its $US523m project in Tanzania, expected to produce first gold in 2027.
- ALS Global (ALQ) -1.21% announced tariffs have had no impact on their commodities business so far and provided FY25 profit guidance of $310m-$313m, with analyst estimates already at ~$308m.
- Bravura (BVS) -11.21% fell on news CEO Andrew Russell will be leaving the business effective Monday – Russell was a key driver of the turnaround of the company over the past few years and his early departure we hear comes from a differing view around strategy.
- Major Shareholder Pinetree Capital is supplying their CIO Shezad Okhai’s as an interim CEO while a global search is undertaken.
- Gold lower during the session, trading around $US3292/oz at our close, off $US27.
- Mixed trading in Asia, Hong Kong +0.13%, China -0.10% while Japan was trading 0.30% higher.
- Iron Ore in Singapore was 0.50% lower, trading at $98/MT.
