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The ASX 200 closed lower today, trading in a fairly tight range through the day, as technology stocks extended their recent slide for a fourth consecutive session and consumer discretionary came under further pressure, falling to a near four-month low. On the positive side, Consumer Staples firmed and Financials held up reasonably well, the two sectors doing the defensive work in what has been a difficult week shaped by rising rate expectations.
- ASX 200: -37.02pts / -0.43% to 8,665.00
- AUD/USD: 0.7023 / flat
- Best sectors: Consumer Staples +0.73%, Financials +0.27%, Energy -0.30%
- Worst sectors: IT -1.66%, Consumer Disc. -1.36%, Utilities -1.25%
- Tech was again the session’s major weak point with the median ASX tech stock is now 43% below its 52-week high — the weakest major sector by that measure. Xero (ASX: XRO) -2.81% to $57.36 fell to its lowest level since May 2019, while WiseTech Global (ASX: WTC) -2.25% to $31.33.
- Consumer Discretionary fell to a near four-month low, leaving the sector down 13% for the year. Eagers Automotive (ASX: APE) -4.74% to $18.49, along with Nick Scali (ASX: NCK) -3.68% to $13.87, JB Hi-Fi (ASX: JBH) -2.75% to $66.03 and ARB Corporation (ASX: ARB) -2.04% to $17.78, were among the larger names under pressure — reinforcing concerns around household spending as higher rates continue to squeeze the consumer.
- Netwealth Group (ASX: NWL) -8.15% to $17.02 was the session’s standout loser after two subsidiaries were served with a class action relating to First Guardian investment options. Netwealth said it will defend the claim and has already paid around $101m in compensation under its earlier remediation program. The legal overhang is likely to weigh on sentiment near term.
- Healius (ASX: HLS) +5.56% to 38c agreed to sell Agilex Biolabs to Novotech for $160m enterprise value, generating approximately $155m in cash proceeds and leaving Healius in a net cash position. The balance sheet improvement is welcome, but Agilex was Healius’s highest-margin and fastest-growing business — and was sold for well below the $301m enterprise value paid in 2021. A bittersweet outcome for long-term holders.
- Inghams Group (ASX: ING) +3.92% to $2.12 confirmed it has received no takeover offer after Canadian pension fund PSP Investments disclosed a 5.62% stake, following earlier speculation. PSP subsequently clarified it does not intend to launch a control transaction. The disclosure adds an interesting dynamic but removes any immediate bid premium.
- Bannerman Energy (ASX: BMN) -3.65% to $3.70 completed the US$320.4m CNNC investment into the Etango uranium project, with China National Nuclear Corporation taking a 45% stake in the JV. The deal leaves Etango debt-free and fully funded through to commercial production, with CNNC contracted to take 60% of output.
- Tungsten Mining (ASX: TGN) -5% to 28.5c appointed Jefferies to seek strategic investors for its Watershed project, alongside an existing debt-financing process. The PFS carries a pre-tax Net Present Value (NPV) of $1.3bn and 198% IRR, with multiple funding options under assessment.
- Brent crude: US$105.18/bbl (-1.33%), easing as hopes for renewed US-Iran negotiations reduced some of the immediate geopolitical risk premium.
- Gold: US$4,278.82/oz (+$3.79 / +0.09%)
- S&P 500 E-mini futures: +5.50pts / +0.07%
- Dow E-mini futures: +55.00pts / +0.11%
- FTSE futures: +41.50pts / +0.39%
