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Market Wrap

ASX closes higher; DroneShield surges, banks rally ahead of RBA rate decision

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The news: The Australian sharemarket finished higher as Australia’s four biggest lenders rallied ahead of the Reserve Bank’s interest rate decision on Tuesday. However, next to nobody is expecting an interest rate cut.

The benchmark ASX 200 gained 0.85% to end at 8,862.8 with nine out of the 11 sectors finishing in green.

The financial sector (+1.7%) was buoyed by gains from Commonwealth Bank (+2.2%), NAB (+1.5%), Westpac (+2%) and ANZ (+1.7%).

The healthcare sector (+1.3%) rebounded after leading losses on Friday in the wake of US President Donald Trump’s announcement that a 100% tariff on branded or patented pharmaceuticals would be effective from 1 October.

CSL (+2.5%) and Telix Pharmaceuticals (+1.4%) both believe the tariffs will have no material impact on their businesses. Resmed (+1.2%) and Fisher & Paykel Healthcare (+0.7%) also posted gains.

Biggest movers:

  • DroneShield (+18%) – The best performer on the ASX 200 despite no company specific news. On Friday, Bloomberg reported that DroneShield is the best performing defence industry stock in Asia.
  • Novonix (+15.3%) – The US-based battery materials producer announced the delivery of its first mass production sample of synthetic graphite for use in industrial applications.
  • Electo Optic Systems (+13.2%) – Flagged that expected full-year revenue for 2025 from existing contracts is between $115 million and $125 million. Additional orders are being pursued which could add up to an additional $25 million.
  • IperionX (+3.4%) – Built on Friday’s gains after it received another USD25 million ($38.25 million) commitment through the US Department of War’s industrial base analysis and sustainment program.
  • Gold miners – The spot price of gold has surged past USD3,800 ($5,783.7) per ounce for the first time. Greatland Resources (+3.9%), Evolution Mining (+4.4%), Ramelius Resources (+3.3%) and Newmont Corporation (+4%).
  • Iluka Resources (-3.9%) – Worst performer across the ASX 200 despite no company specific news.

Other news:

  • Bravura Solutions (+2.5%) – Appointed Colin Greenhill as its next chief executive, effective 1 January 2026.
  • Mineral Resources (-0.8%) – Completed upgrades to its Onslow Iron private haul road which would allow constrained haulage at normal speed.
  • Mayne Pharma (-0.8%) – Its flagship birth control pill NEXTSTELLIS will be listed on Australia’s pharmaceutical benefits scheme (PBS) from 1 October 2025.

What’s ahead:

  • The China Federation of Logistics and Purchasing will release manufacturing and non-manufacturing purchasing managers; index data for September on Tuesday at 11:30am AEST.
  • The RBA will make its next cash rate decision at 2:30pm AEST on Tuesday.
  • RBA governor Michele Bullock will deliver a press conference at 3:30pm AEST.

By Brandon How