Tech Rebound Powers Record Highs
The S&P/ASX 200 climbed 1.84% last week to close at 9,081.4, briefly pushing into fresh record territory mid week. Strength was broad based. Eight of eleven sectors finished higher.
Technology rebounded strongly. Energy extended its rally. Banks continued to underpin the index. Earnings season remains the primary catalyst. Encouraging updates from BHP, CSL and CAR Group helped reinforce investor confidence.
The coming week could prove just as influential.
Sector Performance, Growth Back in Favour
Risk appetite improved materially. The Information Technology sector surged 6.55% for the week. Energy followed with a 4.88% gain. Communication Services, Industrials and Health Care all advanced more than 3%. Financials rose 2.76%. Utilities added 1.04%. Materials posted a modest 0.67% increase.
Defensive consumer names lagged. Consumer Discretionary fell 1.15%. Consumer Staples declined 1.00%. Real Estate was roughly flat to slightly negative. The rally had breadth. Growth and cyclicals led the charge.
Standout Earnings, BHP, CSL and CAR Group
Earnings updates continue to shape short term direction.
BHP used its result to reinforce its long term copper strategy. Strong cash flow and disciplined capital management supported its positioning as a future facing resources leader. Investors responded positively.
CSL delivered stable guidance and earnings that were broadly well received. After a difficult start to the year for health care, the update provided welcome stability.
CAR Group impressed with a standout first half result. Revenue increased 13%. EBITDA rose 12%. The stock jumped around 10% on the session, making it one of the clear winners of reporting season. Quality was rewarded.
ASX Index Snapshot
Broader benchmarks also strengthened:
| Index | Weekly Move |
|---|---|
| S&P/ASX 200 | +1.84% |
| All Ordinaries | +1.80% |
| S&P/ASX 300 | +1.85% |
| Information Technology | +6.55% |
| Energy | +4.88% |
| Communication Services | +3.26% |
| Industrials | +3.12% |
| Health Care | +3.07% |
| Financials | +2.76% |
| Utilities | +1.04% |
| Materials | +0.67% |
| Consumer Discretionary | -1.15% |
| Consumer Staples | -1.00% |
Momentum remains positive heading into the new week.
Global Markets Remain Constructive
International markets were mostly firm. The S&P 500 rose 1.07%. The Dow Jones Industrial Average gained 0.25%. The Nasdaq Composite added 1.51%. In Europe, the FTSE 100 climbed 2.30% while the DAX rose 1.39%.
Asian markets were softer. The Nikkei 225 slipped 0.20% and the Hang Seng Index declined 0.58%. Global risk sentiment remains supportive overall.
ASX Big Movers
Volatility within the ASX 300 highlighted sharp rotations.
Top gainers included:
• Clarity Pharmaceuticals, up 24.83% to $3.57
• Austal, up 19.51% to $5.82
• WiseTech Global, up 12.88% to $48.11
• Clinuvel Pharmaceuticals, up 11.89% to $11.86
• Alkane Resources, up 11.39% to $1.76
Notable decliners:
• Audinate Group, down 10.33% to $3.30
• Australian Clinical Labs, down 7.44% to $2.24
• BrainChip Holdings, down 7.14% to $0.13
• Treasury Wine Estates, down 5.15% to $4.97
• Fortescue, down 4.71% to $20.21
Technology and resources remain the most sentiment sensitive areas.
Commodities Firm, Energy Leads
Commodities were generally supportive. Gold rose 1.53% and remains around 14% higher year to date. Silver climbed 4.16%. Uranium added 2.91%. WTI crude gained 5.90% to US$66.64. Brent crude rose 6.45% to US$71.91. Copper dipped 0.17%. Nickel fell 5.94%. Iron ore declined 0.76% and is down more than 7% quarter to date. Energy strength helped underpin the local index. Iron ore softness remains a watch point.
Currencies, Yen Reversal Dominates
Foreign exchange markets were driven by yen strength and a softer US dollar. The Japanese yen outperformed all major peers. USD weakness amplified the move. USD/JPY fell sharply as both forces combined. Crosses such as AUD/JPY and EUR/JPY also declined more than 1%. This temporarily eased carry trade dynamics that have supported the Australian dollar. Currency volatility bears watching.
What to Watch This Week
Reporting season continues. Updates from Woolworths Group and Coles Group will influence Consumer Staples sentiment. Margin guidance and cost commentary will be critical.
Results from Qantas Airways could move travel and discretionary names. Any trading statements from the major banks will also matter. Financials have been central to recent index highs.
Earnings remain the market’s compass.