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Another session where the ASX was hit early before buyers stepped in, with the index recovering around 60 points from its two-week low to finish marginally higher. Technology and gold stocks led the rebound as investors bought the dip following recent weakness, while softer oil prices helped ease some concerns around inflation and the outlook for US interest rates.
Brent crude eased below US$89/barrel after rising almost 6% over the previous two sessions, while gold recovered toward US$4,050/oz. The improvement in offshore technology sentiment also helped, with US futures turning higher and Asian chip stocks rebounding after the sharp sell-off triggered by concerns around Moonshot’s Kimi K3 model.
- ASX 200: +2.03pts / +0.02% to 8,793.30
- AUD/USD: 0.7012 / +0.20%
- Best sectors: Information Technology +3.26%, Materials +1.33%, REITs +0.58%
- Worst sectors: Healthcare -1.05%, Communications -0.87%, Consumer Discretionary -0.83%
- NEXTDC (NXT) +7.74% to $14.06 was the standout performer after contracted capacity increased by 73MW to 740MW. The stronger backlog could create some upside risk to consensus earnings as Australia’s data-centre investment pipeline continues to expand.
- South32 (S32) +6.62% to $4.35 extended its rally following a strong quarterly update yesterday, with Sierra Gorda copper, Cannington and manganese outperforming expectations. Quarterly sales volumes rose 15%, while the company exceeded FY26 production guidance across several key operations.
- Predictive Discovery (PDI) +6.45% to $0.66, Bellevue Gold (BGL) +5.46% to $1.26, Emerald Resources (EMR) +5.02% to $5.23 and Vault Minerals (VAU) +4.78% to $4.82 benefited from renewed buying across gold equities as bullion recovered
- Evolution Mining (EVN) +5.63% to $10.89 rebounded strongly after recent weakness, while Ramelius Resources (RMS) +4.50% to $3.02, Regis Resources (RRL) +4.42% to $5.90 and Genesis Minerals (GMD) +4.35% also joined the sector-wide recovery.
- Megaport (MP1) +5.10% to $18.95 rallied alongside the broader technology sector as investors reassessed last week’s sell-off in AI-linked names.
- Xero (XRO) +2.05% to $69.67 and WiseTech Global (WTC) +0.86% also gained as sentiment toward growth stocks improved.
- BHP Group (BHP) +1.30% to $58.29 recovered some recent losses while Rio Tinto (RIO) +0.03% to $157.99 finished essentially unchanged.
- The major banks were weaker. Commonwealth Bank (CBA) -0.41% to $170.49, National Australia Bank (NAB) -0.98% to $39.30, ANZ Group (ANZ) -1.19% to $35.70 and Westpac (WBC) -1.20% to $36.22 all declined. Citi said ANZ and Westpac continue to face near-term challenges from legacy technology and restructuring programs.
- HUB24 (HUB) -4.18% to $81.35 fell despite reporting record FY26 platform net inflows of $18.9bn and total funds under administration of $164.3bn, up 20%. Quarterly fund flows were a touch soft.
- Netwealth Group (NWL) -4.05% to $22.03 also weakened despite launching a new wholesale platform targeting Australia’s high-net-worth market.
- Helia Group (HLI) -10.11% to $5.07 was the weakest stock in the ASX 200, while Judo Capital (JDO) -4.71% to $0.91 and Mesoblast (MSB) -4.53% to $2.32 also fell sharply.
- Eagers Automotive (APE) -3.82% to $21.16, Event Hospitality & Entertainment (EVT) -3.76% to $12.04 and Generation Development Group (GDG) -3.16% to $3.37 were among the weaker consumer and financial names.
- Lithium stocks remained under pressure as lithium prices continued to decline. Liontown Resources (LTR) -5.10% to $1.21, Mineral Resources (MIN) -3.48% to $52.69, PLS Group (PLS) -1.67% and Vulcan Energy Resources (VUL) -2.60% finished lower.
- The Bloomberg Global Commodity Lithium Index fell more than 5%, while Chinese lithium carbonate prices have declined around 25% since May amid mine restarts, concerns around EV demand and growing interest in sodium-ion batteries.
- Pro Medicus (PME) -3.03% fell on a broker downgrade, Sonic Healthcare (SHL) -2.58% and CSL (CSL) -1.00% to $121.38 also declined.
- Brent crude: -0.6% to ~US$88.69/bbl after gaining almost 6% over the previous two sessions.
- Gold: +0.9% to ~US$4,045.65/oz, with dip-buying emerging around the key US$4,000 level.
- Iron ore: -1.0% to ~US$98.60/t, near a two-week low as profitability at Chinese steel mills deteriorated.
- Asian markets: South Korea’s Kospi +3.6% and Japan’s Nikkei 225 +1.7%, led by a rebound in technology and semiconductor stocks.
- S&P 500 E-mini futures: +36.50 points / +0.49%
- Dow E-mini futures: +148 points / +0.28%
- US companies we own reporting this week; Blackstone (BX US), Chubb (CB US) & Freeport McMoRan (FCX US).
