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A solid final trading session for the financial year was underpinned by strength in the banks early after their U.S counterparts passed financial regulator stress testing with flying colours overnight, though it wasn’t to last with the move reversing through the session. Healthcare stocks were the winners with decent buying in CSL, though the broader rally couldn’t hold through to the close with the index dropping -18pts in post-session auction between 4:00-4:10pm as sellers flocked in last minute to square away tax positions.
- The ASX200 rose +28pts/0.33% closing at 8542.
- Healthcare (+1.58%), Industrials (+1%) and Consumer Discretionary (+0.97%) led the line.
- Materials (-0.77%), Utilities (-0.28%) and Real Estate (-0.13%) dragged.
- Canada withdrew its digital services tax on technology companies to restart trade talks with the U.S after President Donald Trump threatened to impose new tariffs in retaliation to the tax – U.S futures rallied strongly off the back of the news.
- China PMIs were released at 11:30am this morning, improving for a 2nd straight month from 49.5 to 49.7 though still in contraction (below 50).
- James Hardie (JHX) +7.06% rose as shareholders in US outdoor decking company Azek approved the $14 billion buyout, which will see the JHX shift its primary listing to the New York Stock Exchange.
- DroneShield (DRO) -4.2% rallied early but fell after announcing a $9.7 million Latin American defence contract win.
- Mineral Resources (MIN) -1.6% completed the sale of its iron ore operations and assets in the Yilgarn region to Yilgarn Iron though still retains gold and lithium rights on the tenement.
- NIB Holdings (NHF) +9.43% rallied strongly on a UBS upgrade from ‘neutral’ to ‘buy’ with a $7.85 price target citing a ~30% discount to peer Medibank Private (MPL) +1.41%.
- Superloop (SLC) +1.01% revised earnings guidance higher for FY25 to $91 million, up from earlier guidance of $83-85 million.
- L1 Capital tweaked deal terms as their merger nears completion with Platinum, which will see L1 retain a greater share of the performance fees post-merger.
- Tetratherix (TTX) +4.86% raised $25 million and debuted on the ASX today with an IPO price of $2.88 – the ~$80 million market cap. biotech business develops a medical product for tissue and bone healing.
- Shawn’s Trade Ideas: Betashares Uranium ETF (URNM) -0.88% position stopped out as $8.85 target hit, profit taken at open price of $9.13. New trade idea iShares European Equities ETF +1.11% was filled on the open at $97.01.
- Gold up $20/oz during the session, trading around $US3294/oz at our close.
- Mixed trading in Asia, Hong Kong down –0.3%, China up +0.6% while Japan was trading +0.7% higher.
- Iron Ore in Singapore was flat, trading at $US94.50/mt around our close
