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The big story of the day is that profit takers have come for Commonwealth Bank. As the market’s most valuable stock with a market cap now hovering just above $300B, CBA profit takers effectively dragged the market down with them on Thursday, even after a strong night on Wall Street.
Commonwealth Bank was down just over -2% in the final moments of intraday trade.
That was good news, however, for The Big Australian, BHP Limited, which has been the subject of a perhaps long-overdue rotation on the market back into materials, a sector that fell around -6% through FY25.
BHP, on Thursday, was up +4.6% in the final minutes of intraday trade, making the materials sector the best performer, up just shy of +3% in closing trades.
Of course, the true meat of that rotation will depend on whether or not China’s economic data starts to meaningfully look better across a broad horizon.
Here’s to hoping people don’t withdraw cash from Commonwealth to fund BHP investments, because one analyst predicts a significant Commonwealth correction could tank the entire ASX200 by -5%. One to watch.
At any rate, let’s turn to companies in the green:
Pilbara Minerals jumped nearly 10% in closing trades to around $1.50 per share as the mood in the room around materials stocks broadly lightened; Pilbara Minerals remains a troubled market darling.
Arafura Rare Earths, backed by Gina RIneheart, was zapped out of a recent slumber, it rising nearly +9% in late trades, as the mood spread to the NT’s dormant rare earths potential giant.
Finally, defence player Amaero, which provides the niobium powders needed in missiles, jumped just over +6% in late trades as the company benefits from those hunting for cheap defence stocks.
And as for companies in the red,
Boss Energy fell over -5% in the closing moments, that perhaps surprising move coming on a day when key uranium ETFs also slumped.
Elsewhere, Dateline Resources tanked around -6% in the final minutes as investors appeared to take money out of the mining speccy in favour for more established miners, even despite Trump’s endorsement on Truth Social.
Finally, JB Hi Fi was also a victim of the great materials revival, with its shares falling just over -3% ahead of settlement on Thursday.
That’s Market Close, I’m Jon Davidson, have a great night and we’ll see you tomorrow.
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