This gain came despite lingering concerns over the global economic outlook. Investors were cautiously optimistic following signals from former US President Donald Trump about a forthcoming agreement with Britain. The news helped lift the market after a slow start to the day.
The benchmark ASX200 rose by 13.4 points, closing at 8191.7. The broader All Ordinaries index gained 21.9 points, ending the session at 8421.7. The gains marked a positive turn in a week dominated by international uncertainty.
Eight out of the eleven industry sectors posted gains. The rise was led by the defensive utilities sector, which rose by 1.81 per cent. Origin Energy and APA Group made solid gains, and the consumer staples sector also strengthened.
However, the financial sector shed 0.62 per cent. ANZ Bank was the weakest among the major lenders, sliding 1.93 per cent following its half-year results. Despite recording a record $11 billion in revenue, ANZ’s profitability took a hit with a narrowing net interest margin. Westpac also declined, losing over 4 per cent. NAB bucked the trend slightly with a 1.39 per cent gain.
Mining stocks offered a mixed performance. BHP closed flat, Rio Tinto made a small gain, and Fortescue Metals dropped slightly. This movement reflected broader uncertainty in global commodity demand, especially with ongoing trade discussions between the US and China.
Global investor sentiment remains tentative after US Federal Reserve Chair Jerome Powell cautioned about the rising risks of inflation and unemployment. The Fed signalled a cautious approach, acknowledging the potential inflationary impact of Trump’s tariff-driven trade policy, while keeping the door open for future rate cuts if necessary.
In corporate news, Transurban surged 1.68 per cent after revealing a $50 million cost-cutting initiative that includes the loss of 300 jobs. Orica shares jumped 7.4 per cent following a strong earnings report showing a 40 per cent increase in net profit. Polynovo was the day’s top performer, soaring over 11 per cent.
On the downside, Light and Wonder tumbled more than 8 per cent after warning that new trade tariffs would raise costs, particularly given its reliance on imported components from Asia.
The Australian dollar dipped 0.23 per cent to 64.6 US cents by the close, reflecting ongoing global economic uncertainty and cautious market sentiment. Although Australia will no doubt see other countries doing deals as a positive.
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