CBA sets new record, ASX closes lower following US attack on Iran

Biggest movers:

• Big Banks – Commonwealth Bank (+1%) set a new record close of $184.35, overtaking the record set last Thursday. ANZ (-0.6%) finished lower after UBS analysts downgraded their position on the stock from 'neutral' to 'sell' partly due to its weaker retail franchise compared to competitors. NAB (-0.1%) finished lower while Westpac (+0.6%) finished higher.
• Iron ore miners – Morgans downgraded its position and cut its target price for BHP (-1.6%), Fortescue (-1%) and Rio Tinto (-0.3%) shares. The financial advisory firm also lowered its iron ore price forecast for financial year 2026. The wider materials sector (-1.3%) finished lower.
• Energy (+0.1%) – Oil refiner Viva Energy (+4.4%) led gains on the ASX 200 as oil prices surged on fears Iran will block key industry shipping lanes. The operator of the other oil refinery in Australia, Ampol (+0.5%), also gained. Fossil fuel giant Woodside (0%) finished flat while Santos (+1%) finished higher.
• Gold miners – Prices for the haven-asset ticked down throughout the day, despite increasing tensions in the Middle East, eating into an earlier advance. Gold miner Bellevue Gold (-6.4%) led losses on the ASX 200 with rivals Genesis Minerals (-3.9%) and Ramelius Resources (-3%) also posting losses.
• Adairs (-20.5%) – The furniture retail group reported second-half guidance for earnings before interest and tax would be 9.2% lower year-on-year.

Deal updates:

• Smartpay (+9.6%) – The payments provider entered a scheme implementation agreement to be fully acquired by US payment processing business Shift4 for $274 million.
• PointsBet (+0.4%) – Hosed down a potential takeover from rival sports betting company Betr (-3.3%), announced on Friday, and highlighted there is “significant support” for Japanese entertainment company MIXI’s takeover bid, which will face a shareholder vote on Wednesday.
• The Reject Shop (0%) – Shareholders in the discount store chain have voted overwhelmingly in favour of a $259 million takeover bid from Toronto-listed dollar store Dollarama.

Analyst research:

• Lovisa (+1.2%) – UBS analysts upgraded their position on the retailer from ‘sell’ to ‘neutral’ and raised its price target from $26 to $30 on better-than-expected store growth for the jewellery retailer.
• CSL (+0.2%) – Bell Potter lowered its target price but retained a ‘buy’ rating on the stock. The research note expects US demand headwinds for vaccines amid a “more scrutinising regulatory environment”.
• Seek (-0.9%) – Bell Potter reiterated its ‘buy’ recommendation and lifted its target price even though Seek’s ad index data saw further improvement and market share gains against the Australian Bureau of Statistics’ internet job ad index.

Other news:

• Metcash (+2.7%) – The retailer reported a 10.1% increase in full-year group statutory earnings.
• News Corp (+1.7%) – Chief executive Robert Thomson’s contract has been extended to June 2030. It was previously set to expire in June 2027.
• Westgold Resources (-0.3%) – Reported a better-than-expected mineral resource estimate for gold reserves in the Fletcher Zone in Western Australia.
• JB Hi-Fi (-0.3%) – Appliances retailer The Good Guys, a subsidiary of JB Hi-Fi, will pay a $13.5 million penalty and foot $200,000 of ACCC legal costs to resolve court proceedings relating to misleading store credit promotions.
• MA Credit Income Trust (0%) – MA Financial's listed investment trust launched a wholesale placement to raise up to $49.7 million. In a trading halt until 24 July.

What’s ahead:

• Australia’s eSafety Commissioner Julie Inman Grant will address the National Press Club, with a speech titled "Swimming between the digital flags: helping young Australians navigate social media’s dangerous currents", tomorrow at 12:30pm.
• S&P Global will release its flash figures on the purchasing managers’ index for France, Germany, the UK and the US throughout the evening.