S&P/ASX 200 Gains as Defensive Sectors Lead the Way
The S&P/ASX 200 closed 49.1 points higher, marking an increase of 0.57%. This upward movement was largely driven by renewed tensions between the US and Iran, which prompted investors to shift their focus towards defensive sectors. Supermarkets, healthcare, real estate, and utilities were among the major beneficiaries of this trend. However, gold stocks continued to face challenges as bullion prices fell to a six-month low. CSL, on the other hand, performed exceptionally well, reclaiming the $100 mark and now up over 14% from its low on 3 June.
ASX 200 Session Chart
The S&P/ASX 200 (XJO) finished 49.1 points higher at 8,653.3, which is 0.8% from its session low and 0.2% from its high. Despite a strong performance in the benchmark index, the broader-based S&P/ASX 300 (XKO) saw only a narrow lead for advancers over decliners, with 149 to 139.
Sector Performance
Consumer Staples (XSJ): This sector was the standout performer of the day, rising by 3.9%. It has increasingly become a capital warehouse for investors exiting global-growth-exposed names. Metcash (MTS) gained 5.7%, while Endeavour Group (EDV), Coles (COL), and Woolworths (WOW) also posted strong gains. WOW is now up over 10% in the past week.
Consumer Discretionary (XDJ): Benefiting from lower bond yields and renewed confidence that most of the RBA's rate pain is behind us, this sector rose by 3.6%. Super Retail Group (SUL), Bapcor (BAP), Harvey Norman (HVN), and Wesfarmers (WES) all surged. Light & Wonder (LNW) was also sharply higher.
Real Estate (XPJ): The sector rose by 1.8% due to declining bond yields. Lendlease (LLC), Ingenia Communities (INA), and Stockland (SGP) all advanced.
Utilities (XUJ): This sector gained 1.2%, with APA Group (APA) and AGL Energy (AGL) leading the charge. Within Communication Services (XTJ), Telstra (TLS) was the primary driver, benefiting from its utility-like earnings stream and reliable dividend.
ASX 200 Healthcare Sector Index (XHJ) intraday chart
Health Care (XHJ): This sector recorded its fourth consecutive positive session, a remarkable turnaround for the ASX's most beaten-down sector. CSL (CSL) closed above $100 for the first time since last month's profit downgrade, now up 14% from its June 3 low. Cochlear (COH) and Ramsay Health Care (RHC) also gained.
ASX 200 Financials Sector Index (XFJ) intraday chart
Financials (XFJ): This sector rose by 0.9% and played a significant role in the late afternoon rally. Westpac (WBC), Magellan Financial (MFG), National Australia Bank (NAB), and ANZ (ANZ) all gained. Commonwealth Bank (CBA) was the lone major bank to slip.
ASX 200 Information Technology Sector Index (XIJ) intraday chart
Information Technology (XIJ): This sector declined by 2.3%, continuing to retreat from recent highs. High-P/E growth stocks found few buyers as US rate expectations remained elevated ahead of tonight's critical US CPI data. Weebit Nano (WBT) and Catapult Sports (CAT) were among the sharpest fallers.
ASX 200 Materials Sector Index (XMJ) intraday chart
Materials (XMJ): This sector fell by 1.1% as fears of another Fed rate hike loomed. Alcoa (AAI), Mineral Resources (MIN), Sandfire Resources (SFR), South32 (S32), and Rio Tinto (RIO) all declined. BHP (BHP) was the only major miner to post a slim positive close.
Gold Sub-Index (XGD): This sub-index fell by 4.5%, contributing to the losses in the Materials sector. COMEX gold futures dropped 1.5% to US$4,222/oz, while COMEX silver futures fell 1.0% to US$64.67/oz.
Top Performers and Losers
Today's best ASX Top 300 gainers: Steadfast (SDF), AUB (AUB), Reece (REH), Universal Store (UNI), Nick Scali (NCK), Sunrise Energy Metals (SRL), IDP Education (IEL), Metcash (MTS), Super Retail (SUL), Endeavour (EDV), Coles (COL), Light & Wonder (LNW), Orora (ORA), Reliance Worldwide (RWC), Bapcor (BAP), GWA (GWA), A2 Milk Co. (A2M), Harvey Norman (HVN), and Wesfarmers (WES).
Today's worst ASX Top 300 losers: Black Cat Syndicate (BC8), PMET Resources (PMT), Silex Systems (SLX), Ora Banda Mining (OBM), Weebit Nano (WBT), 4DMEDICAL (4DX), Electro Optic Systems (EOS), Liontown (LTR), Catapult Sports (CAT), Yancoal Australia (YAL), Paladin Energy (PDN), Dateline Resources (DTR), Pantoro Gold (PNR), Chalice Mining (CHN), St Barbara (SBM), Bellevue Gold (BGL), Southern Cross Gold (SX2), Genesis Minerals (GMD), and Nexgen Energy (NXG).
Market Analysis and Key Levels
Nasdaq Composite Index: The analysis highlighted the importance of today’s candle, which could determine the direction of the market. Key levels include 25739, which is a point of demand, and 24199-24491, which represents a range of support.
S&P/ASX 200 (XJO): The analysis noted that the XJO showed resilience but failed to breach key resistance levels. Key supply levels include 8811 and 8888, while demand is at 8485.
Economic Data and Upcoming Events
Today's Economic Data: China's May Consumer Price Index (CPI) rose by 1.2% year-on-year, slightly better than expected. The Producer Price Index (PPI) increased by 3.9%, in line with forecasts.
Later this week: Key events include the release of the US May Core CPI, the European Central Bank's Main Refinancing Rate decision, and the US 30-year Treasury Bond Auction.
Latest News and Market Moves
Interesting Movers: Boresight (BST) debuted on the ASX following an $8 million IPO, while Steadfast Group (SDF) confirmed a $6.7 billion deal. Cogstate (CGS) reported $67.1 million in sales contracts, and Wesfarmers (WES) outlined plans for growth through AI and data monetisation.
Trading Lower: Alicanto Minerals (AQI) launched a $30 million institutional placement, IGO (IGO) faced a fire at its Greenbushes lithium operation, and Sigma Healthcare (SIG) held preliminary discussions regarding a potential acquisition of Boots.
Broker Moves and Price Targets
Several brokers updated their recommendations and price targets for various companies. ANZ Group Holdings (ANZ) was retained at buy, while Commonwealth Bank of Australia (CBA) was retained at sell. CSL (CSL) was retained at hold, and REA Group (REA) was downgraded to neutral.
Market Scans and Tools
Investors can access free investment tools and ASX research through platforms like Market Index, which provides broker consensus, ASX announcement data, and dividend information.
Nasdaq Composite Index
S&P/ASX 200 (XJO)
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