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Sometimes the ASX200 acts a little bit like a turbulent daughter. Despite the fact there isn’t really anything wrong – or perhaps because of that – the bourse just can’t seem to pull itself out of its funk. Or it doesn’t want to.
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The big explanation for a sour mood down under, conventionally, would be the higher-than-expected inflation data from the ABS on Wednesday that confirmed the national headline inflation rate now sits at 3.2% – that’s actually outside the RBA target band of 2-3%, and, basically shouts “no rate cut for you.”
And that could be exactly all it is. In the background, the gold price is inching its way back to US$4,000/oz – suggesting, perhaps, the market was expecting more from the Trump-ASEAN meeting(s), given that appeared to be the catalyst that originally saw the price recede down around -6% (depending on your timeframe for measurement.)
At any rate, let’s turn to the ASX when it comes to sectors. Discretionary was the loser of the day – no surprises there, given the higher than expected inflation – while health care led the gainers.
And so what about companies in the green?
Bougainville Copper bounced back on Thursday after a volatile week or two of trading, right now that stock appears to be the focus of day-by-day swing traders, though, it did have some momentum during the critical minerals deal of yesterweek.
Mineral Resources meanwhile up nearly +14% as the iron ore price staged a recovery to US$107/tn on the SGX.
Finally, Paladin Energy continued to climb in what has been a good week for a select number of uranium companies, that comes as uranium prices have also staged a climb this week; NYMEX U futures are up over 3% in the last twenty four hours.
And so what about the reds?
Droneshield staged yet another decline on Thursday back down to $3.85/sh as the market continues to recalibrate its level of conviction in the defence thematic.
ERoad at the same time staged a decline of -7% in the final leg of trade as momentum appears to have wound down following that company’s recent announcement it was ditching the US to focus on the ANZ region.
Finally, everything-company Wesfarmers fell over -6% to $86.96/sh as the discretionary sector’s rough Thursday bled into sentiment for the stock.
That’s Market Close, have a great Thursday evening and we’ll see you on Friday.
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