ASX breaks another record high
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The news: The Australian sharemarket hit a new record high — the second this week — as interest rate-sensitive sectors rallied on optimism regarding a US interest rate cut.
The numbers: The benchmark ASX 200 gained 0.73% to end at 8,057.9, with all 11 sectors finishing in green.
The best performing sector was AREITs, up 1.49%, followed by IT (1.24%). Dexus, up 2.6%, announced that it had poached AustralianSuper’s head of real assets, Nik Kemp, for its newly created role of executive general manager of growth markets.
Gold miners were among the top performers during the trading day after gold prices hit another record high. Northern Star (3.73%), Ramelius Resources (3.32%), West African Resources (3.01%), and Bellevue Gold (1.61%) all ended higher.
Commonwealth Bank, up 0.79%, continues to defy gravity as it regained first place as most valuable company by market capitalisation. However, Bell Potter analysts said its overvalued share price was “flying blissfully ignorant of risks”.
Meanwhile, Star Entertainment ended 2.02% higher after rectifying issues arising from a system upgrade that suspended its electronic gaming. All electronic gaming has been progressively turned back on.
The worst performing sector was materials, up 0.08%, followed by energy (0.17%). BHP ended 0.77% lower despite hitting its full-year production and cost guidance after lifting output for most of its commodities in the June quarter.
DroneShield shares continued their selloff, ending the day 12.62% lower. The company pointed to a Capital Brief article detailing investors' scrutiny of its overvaluation as it approached a $2 billion market cap after the ASX queried its share price plunge on Tuesday.
Despite early gains, Cettire fell 4.67% after it posted additional financial metrics, ahead of its full-year results, that said its gross revenue would be an 81% to 82% increase from the previous year.
Synlait Milk shares fell 5% after the dual-listed New Zealand dairy producer withdrew its full-year earnings guidance citing continuing uncertainty.
The Australian dollar is higher buying 67.33 US cents.
The context: Thursday will see the Australian Bureau of Statistics release the latest labour force figures — the last read before the Reserve Bank meets in August.
Evolution Mining and Santos will post their respective quarterly results on Thursday.
