It was another bruising but ultimately constructive week for Australian equities, with the ASX200 finishing higher and holding close to all-time highs despite wild stock-level volatility as reporting season met the ongoing AI debate head-on.
The index was again pulled in different directions under the surface, with sharp rotations between sectors and increasingly binary outcomes on earnings day. Strong results were rewarded aggressively, while any hint of disappointment was met with little mercy.
Financials and utilities provided welcome ballast, resources remained influential following strong results from the heavyweight miners, while technology and selected growth names continued to sit in the eye of the AI disruption storm.
In short, the market remains headline-strong but deeply selective, with conviction building around earnings certainty, balance-sheet strength and defensiveness as investors continue to sell first and ask questions later in parts of the market.
Earnings momentum and guidance upgrades drove outsized gains, with investors rewarding clarity, balance-sheet strength and operational delivery:
Winners: Austal (ASB) +29%, HUB24 (HUB) +27%, Technology One (TNE) +23%, Netwealth (NWL) +21%, Paladin Energy (PDN) +19%, Telix Pharmaceuticals (TLX) +19%, Superloop (SLC) +18%, NRW Holdings (NWH) +17%, Magellan Financial Group (MFG) +16%, and Karoon Energy (KAR) +14%.
The market remained ruthless toward earnings disappointment and perceived structural risk, with selling pressure concentrated across resources, consumer and growth stocks:
Losers: Zip Co (ZIP) -25%, Reliance Worldwide (RWC) -13%, Capstone Copper (CSC) -12%, Megaport (MP1) -10%, Whitehaven Coal (WHC) -9%, Guzman y Gomez (GYG) -9%, Lovisa (LOV) -8%, Treasury Wine Estates (TWE) -7%, IGO Ltd (IGO) -6%, and Fortescue (FMG) -6%.
Overseas stocks ended the week higher while bonds and the US dollar fell. The US Supreme Court has struck down the broad global tariffs that President Trump imposed under emergency powers, ruling that he exceeded his constitutional authority. After a brief drop, the S&P 500 bounced. The president said he’ll impose a 10% global levy on trading partners, and claimed that various categories of his existing program remain in place. The decision opens the door for widespread legal challenges with thousands of companies and importers expected to seek refunds on up to US$170 billion in tariffs already paid to the US government.
- SPI Futures are pricing a mildly positive open on Monday, up +16pts/0.18% ahead of another big week or reporting. Copper was a standout, supporting a 90c rally in BHP in the US.
