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The ASX had another volatile session, falling sharply in early trade before recovering the bulk of its losses through the afternoon. The market was caught between a strong lead from Wall Street’s record highs and fresh uncertainty around the Middle East, with conflicting signals on ceasefire negotiations keeping oil prices elevated and broader sentiment cautious. Despite the negative finish, the recovery from intraday lows suggested investors remain reluctant to materially de-risk
Technology continued its impressive rebound, building on the AI-driven rally offshore, while Materials also held up well thanks to strength in copper and lithium. Financials, Real Estate and Consumer stocks bore the brunt of the selling after the Fair Work Commission approved a larger-than-expected 4.75% wage increase, raising concerns around margins and keeping August rate hike expectations alive.
- ASX 200: 8,724.40 / −5.00pts / −0.06%
- AUD/USD: 0.7182 / −0.04%
- Best sectors: IT +4.71%, Materials +1.25%, Communications +1.07%
- Worst sectors: Real Estate -1.44%, Consumer Staples -1.31%, Healthcare −1.21%
- SRG Global (ASX: SRG) +16.56% to $3.66 rallied after securing $1.85bn of new contracts, upgrading FY26 EBITDA guidance to the top end of its range and initiating FY27 guidance ahead of consensus expectations.
- A fresh batch of US contract wins and renewals helped Pro Medicus (ASX: PME) +10.81% to $160.08 outperform, with brokers pointing to strong pricing power and little evidence AI is disrupting demand.
- Tasmea (ASX: TEA) +16.21% to $8.03 surged after announcing the acquisition of Maxim Group in a deal valued at up to $254m, with management highlighting strong exposure to data centres, battery storage and major infrastructure projects.
- Technology stocks continued their recent recovery, with gains across Life360 (ASX: 360) +13.25% to $23.07, Xero (ASX: XRO) +7.47% to $87.00, WiseTech Global (ASX: WTC) +7.87% to $42.23 and Seek (ASX: SEK) +6.99% to $13.17.
- Northern Star (ASX: NST) +13.61% to $21.03 bucked weakness across the gold sector after activist investor Elliott Management called for a strategic review, board refresh and CEO search, while suggesting all options, including a sale of the company, should be considered. They disclosed a $1bn holding.
- Retailers and shopping centre operators were sold following the Fair Work wage decision, with weakness across JB Hi-Fi (ASX: JBH) −5.43% to $71.05, Woolworths (ASX: WOW) −1.85% to $34.41, Scentre Group (ASX: SCG) −2.39% to $3.68 and Vicinity Centres (ASX: VCX) −3.97% to $2.42 on concerns around margin pressure and consumer spending.
- DroneShield (ASX: DRO) +3.55% to $3.21 rebounded after securing a $24.9m counter-drone contract supporting the US Department of War’s Joint Interagency Task Force 401, with revenue expected to be recognised across FY26 and FY27.
- ResMed (ASX: RMD) −2.07% to $26.02 remained under pressure, although Morgans argued the recent selloff is being driven by sentiment and healthcare de-rating concerns rather than any deterioration in underlying fundamentals. We don’t like the trend in RMD, and cut our losses today – reallocating funds into Pro Medicus.
- Questions emerged around Fortescue (ASX: FMG) −0.80% to $22.33 after China’s state-backed iron ore buyer reportedly sought additional scrutiny of the miner’s new Fortune Fines product as negotiations over a long-term supply agreement continue.
- Kelsian Group (ASX: KLS) -0.24% to $4.24 edged lower as it secured a two-year extension to its Sydney Region 6 bus contract, worth approximately $500m in additional revenue through to 2028.
- Energy World (ASX: EWC) +102.78% to 7.3c soared after agreeing to sell gas and steam turbines to Hallador Energy for US$350m, generating proceeds that dwarf the company’s current market capitalisation.
- Pengana Private (ASX: PCG) +4.58% to $0.80 attracted attention after launching its AI Private Opportunities Trust, with cornerstone demand already exceeding the minimum raising target ahead of a proposed July listing.
- Oil (WTI): ~US$91.15barrel / -1.1%
- Gold: US$4,533/oz / +1.1%
- Iron Ore: ~US$104.95mt +0.4%
- Asian Markets: China +0.25%, Hong Kong +1.82%, Nikkei –0.67%
- Global Futures: S&P500 E-Mini –0.2%, Dow E-Mini –0.3%, FTSE +0.65%
