ASX closes at fresh record high as CBA becomes top stock
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The news: The Australian sharemarket has ended the week on a record high while Commonwealth Bank overtook BHP to become the largest stock by market cap.
The numbers: The benchmark ASX 200 gained 0.88% to end at 7,959.3, with 10 out of 11 sectors finishing in green. The index also hit a record intraday high early in the trading day at 7,968.
The best performing sector was AREITs, up 1.98%, followed by consumer discretionary (1.67%) and healthcare (1.5%).
The big four banks all gained and CBA’s 1.16% lift was enough to overtake BHP as the largest ASX stock to reach a market cap of $220.33 billion.
Platinum Asset Management ended 1.45% higher after it scrapped its long-term incentive plan for its partner, along with amending the contract of its new CEO, as part of its ‘turnaround strategy’.
Meanwhile, Cettire shares soared as much as 21% during the trading day but ended 0.35% higher despite no new market announcement. The stock’s valuation remains 50% down since the start of the year.
The worst performing sector was IT, down 1.19%, followed by consumer staples (0.02%) and telecommunication services (0.36%). Large tech stocks Wisetech (-3.73%), Xero (0.93%), NextDC (-2.45%), and Computershare (-3.85%) all fell, following the Nasdaq’s sharp decline overnight. Investors sold off large tech stocks on the Nasdaq and rotated into smaller companies on rising bets the Federal Reserve would cut rates in September.
BHP’s move to suspend its nickel operations in WA is having a ripple effect as Alliance Aviation (0.65%) and GR Engineering (-4.27%) both flagged lower earnings.
Lynas Rare Earths ended 0.08% lower after it announced it was looking into contingency plans following the suspension. BHP ended the trading day 0.46% lower.
The Australian dollar is higher buying 67.68 US cents.
The context: Tonight will see the release of the latest producer price index figures for the US.
Next week, the Australian Bureau of Statistics will release the latest labour force figures while the European Central Bank makes its next interest rate decision.
