This came after softer-than-anticipated retail sales data suggested consumers are still holding back on spending. This added pressure on the central bank to take further action to support economic momentum.
The S&P/ASX 200 rose by 56.6 points, or 0.7 per cent, finishing the day at 8597.70. This figure was a new record close. Gains were seen across most sectors, with materials and real estate investment trusts leading the advance. The Australian dollar eased slightly, trading at US65.71¢ late afternoon.
Miners were among the day’s top performers, driven by strong gains in iron ore majors. BHP climbed 1.7 per cent, Fortescue surged 3.8 per cent, and Rio Tinto rose by 2.1 per cent. South32 and Bluescope Steel also made advances, up 5 per cent and 4.7 per cent respectively. Building materials supplier James Hardie jumped 5.3 per cent, following continued investor confidence after its proposed acquisition of US-based Azek received approval.
The real estate investment trust (REIT) sector responded positively to expectations of lower interest rates. Major players like The Goodman Group, Stockland, Scentre, and Dexus all posted solid gains.
However, the upbeat tone of the market was overshadowed by losses in individual stocks. Domino’s Pizza saw a dramatic 15.8 per cent fall in its share price following the announcement that its CEO would step down.
Qantas also faced turbulence, with shares falling 2.2 per cent in the wake of a major data breach. The incident compromised the personal information of up to six million customers. It marks one of the most serious cyber incidents to hit a major Australian corporation in recent memory.
Helia Insurance experienced a steep 21.4 per cent decline after announcing the likely loss of a major client, ING. The company has initiated a strategic review in response to the setback.
The latest retail sales figures added to concerns about ongoing consumer caution. Data from the Australian Bureau of Statistics showed a modest 0.2 per cent increase in May sales, well below the expected 0.5 per cent gain. Economists argue that sluggish spending is a sign the RBA may need to act soon.
Some analysts urge restraint, suggesting the central bank may wait for the next quarterly inflation report. While investor confidence remains high, all eyes will be on the RBA’s next steps.
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