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Market Wrap

ASX sets new record close as all sectors gained

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The news: The Australian sharemarket finished at a new record close, more than recuperating losses taken on Wednesday, as every industry sector posted gains.

The benchmark ASX 200 rose 0.9% to end at 8639 with all of the 11 sectors finishing in the green.

The industrials sector (+1.4%) was the best performing. Transurban (+2%), Brambles (+0.7%) and Computershare (+3%) finished higher while SGH (-0.8%) finished lower.

The interest rate-sensitive real estate sector (+1.3%) also gained as a higher than expected unemployment rate, released by the Australian Bureau of Statistics, strengthened the case for the Reserve Bank of Australia to lower the cash rate in August. Goodman Group (+0.8%), Scentre Group (+1.9%) and Stockland (+1.1%) finished higher.

Commonwealth Bank (+1.8%), NAB (+1.1%), Westpac (+1.2%) and ANZ (+1.1%) led gains in the finance sector (+1.3%).

Biggest movers:

  • Block Inc. (+5.1%) – The best performing stock on the ASX 200 despite no company-specific news.
  • Auckland International Airport (+4.3%) – One of the biggest gainers on the ASX 200 after being told by the New Zealand Ministry of Business, Innovation and Employment (MBIE) it is “not considering legislative change” following a consultation on the effectiveness of airport regulation.
  • Lifestyle Communities (-4%) – Was the worst performing stock on the ASX 200 despite no company specific news. On 8 July a Victorian tribunal ruled that deferred management fees in some of the company's residential contracts were void.
  • Gold miners – The spot price of gold ticked down over the day as the US dollar lifted and US President Donald Trump said it was "highly unlikely" he would dismiss Federal Reserve Chair Jerome Powell. Genesis Minerals (-2.7%) was among the biggest losers despite beating its upgraded production guidance following a record quarterly haul. West African Resources (-3.9%) and Westgold Resources (-1.8%) were also among the biggest ASX 200 losers.

Deals news:

  • PointsBet (0%) – Japanese entertainment giant MIXI officially lodged its off-market all-cash takeover bid for the sports betting company, delivering on a commitment it made before its earlier takeover proposal did not pass a PointsBet shareholder vote. PointsBet also told shareholders to take no action on a rival offer announced by Betr (+11.1%) overnight.
  • Beach Energy (+0.7%) – The fossil fuels producer will buy Vintage Energy’s interest in PEP171, an onshore gas exploration project in the Otway Basin in the south of Victoria.

Other news:

  • Clarity Pharmaceuticals (+2.1%) – Completed enrolment of patients for a new study evaluating the performance of its imaging agent Cu-SAR-bisPSMA, a novel diagnostic option for patients with prostate cancer.
  • Breville (+2%) – UBS upgraded its position on the stock and lifted its price target as they expect the kitchen appliance maker’s sales to more than double over the next decade.
  • Qantas (+0.6%) – Obtained an interim injunction in the New South Wales Supreme Court to prevent stolen data from being accessed or published by anyone in light of data breach at the end of June that could impact around 5.7 million customers.
  • Santos (+0.5%) – The oil and gas company reported an increase in production and sales volume in the second quarter but narrowed full-year production guidance due to flooding at the Cooper Basin.
  • Rio Tinto (+0.5%) – Morningstar analysts said shares in the diversified miner were ‘undervalued’ while iron ore prices reached a two month high. On Wednesday, the company reported second-quarter production that beat market estimates.
  • CAR Group (-2.9%) – Chief executive and managing director Cameron McIntyre is stepping down. Chief financial officer William Elliott will be promoted to the top job effective 15 August.
  • Bowen Coking Coal – Mining services provider BUMA Australia issued a creditor’s statutory demand for $6.8 million to the coal producer on Wednesday that will trigger a deemed insolvency event if not paid. Bowen shares are in a trading halt.

What’s ahead:

  • The US Census Bureau will release monthly retail sales data for June tonight at 10:30pm.
  • The US Department of Labor will release weekly unemployment claims data tonight at 10:30pm.

By Brandon How