- Markets @ Midday: Listen here at lunchtime or find all Market Matters Podcasts on Spotify.
The ASX 200 finished essentially flat today, with strength across financials, communications and consumer discretionary offset by sharp weakness in materials and energy. The market recovered from earlier losses but struggled to make headway as BHP reversed much of Wednesday’s rally and oil-exposed names continued to give back recent gains.
Materials were the key drag after BHP warned copper production would decline in FY27, while iron ore slipped back below US$100/t. Banks provided support, led by Commonwealth Bank and NAB, while several growth and media names rallied strongly following positive company-specific updates.
- ASX 200: -0.67pts / -0.01% to 8,840.40
- AUD/USD: 0.6997 / -0.10%
- Best sectors: Communications +1.28%, Consumer Discretionary +1.10%, Financials +0.83%
- Worst sectors: Energy -1.58%, Materials -1.56%, Utilities -0.24%
- AMP Ltd (AMP) +8.67% to $1.88 was the standout performer after forecasting first-half underlying net profit of $170m–$180m, supported by stronger contributions from its China partnerships and additional carried interest. The update was well received given the market’s low expectations for the group.
- REA Group (REA) +7.15% to $159.51 rallied after June property listings growth of 13% came in ahead of expectations. Citi said the stronger result created upside risk to forecasts and retained its Buy rating with a $181.15 target price.
- Mesoblast (MSB) +6.95% to $2.77 continued its strong run, extending recent momentum without a major new company announcement.
- Life360 (360) +5.74% to $26.70 rallied alongside broader strength across selected growth names, while Lovisa Holdings (LOV) +5.06% to $23.66 also bounced strongly after a difficult period for consumer discretionary stocks.
- IRESS Ltd (IRE) +3.93% to $6.61 advanced, while PEXA Group (PXA) +3.68% to $7.89 rebounded after recent weakness despite Goldman Sachs downgrading the stock to Neutral earlier in the week.
- Washington H. Soul Pattinson (SOL) +3.18% to $45.43 and Treasury Wine Estates (TWE) +2.99% to $4.83 were among the stronger large-cap performers.
- Financials provided the main index support. Commonwealth Bank (CBA) +1.54% to $172.61, National Australia Bank (NAB) +1.53% to $39.87, ANZ Group (ANZ) +0.72% to $36.21 and Westpac (WBC) +0.29% to $36.69 all finished higher.
- BHP Group (BHP) -2.16% to $59.25 fell after warning that copper production would decline to 1.65–1.80mt in FY27 from 1.95mt in FY26. The outlook reflected a mechanical failure in South Australia and lower ore grades in Chile, with guidance around 2% below consensus.
- Rio Tinto (RIO) -0.92% to $163.95 and Fortescue (FMG) -1.15% to $18.86 also declined as iron ore slipped back below US$100/t.
- Energy stocks remained under pressure as investors took profits following their recent rally. Woodside Energy (WDS) -1.77% to $29.40, Santos (STO) -1.56% and Origin Energy (ORG) -1.43% all finished lower.
- Mineral Resources (MIN) -3.51% to $58.20 underperformed despite Morningstar describing the stock as the best value among the iron ore miners, with a $77 fair value estimate.
- Capstone Copper (CSC) -3.70% to $13.29, PLS Group (PLS) -3.23% to $4.49, Silex Systems (SLX) -3.18% to $4.73 and IperionX (IPX) -3.14% to $3.55 were among the weaker resource and growth names.
- Telix Pharmaceuticals (TLX) -2.87% to $15.57, Deep Yellow (DYL) -2.95% to $1.32 and Predictive Discovery (PDI) -3.05% to $0.64 also declined.
- QBE Insurance (QBE) -2.14% to $24.69 was weak despite the broader strength across financials, while Xero (XRO) +1.33% to $69.18 recovered some of its recent losses.
- Brent crude: held around US$85/bbl as the US continued attacks on Iran aimed at securing shipping through the Strait of Hormuz.
- Iron ore: slipped back below US$100/t, weighing on the major miners.
- S&P 500 E-mini futures: +1.75 points / +0.02%
- Dow E-mini futures: +31 points / +0.06%
