The Australian share market has continued its upward trend for the third consecutive day, buoyed by gains in banking and retail sectors, despite declines in CSL and Seek shares.
Gold miners saw significant benefits as gold prices hit a record high amid escalating geopolitical tensions between Iran and Israel. However, lithium companies faced setbacks.
The benchmark S&P/ASX200 index increased by 13.1 points, or 0.17%, closing at 7,826.8. Similarly, the All Ordinaries Index rose by 13.7 points, or 0.17%, to finish at 8,042.2. Overnight, gold surged by $35 to a record $2,472 per ounce, while Brent crude oil also saw a three-week high at $81.80 per barrel due to Middle Eastern geopolitical risks.
Locally, economic indicators showed some positive trends. The Australian Bureau of Statistics reported a smaller-than-expected 0.8% increase in average wages for the June quarter, suggesting that wage pressures may be easing.
Consumer sentiment improved in August, according to the Westpac-Melbourne Institute survey of 1,200 Australians. Additionally, NAB’s survey of 400 businesses indicated a rise in business conditions for July, marking the first improvement in five months.
NAB’s chief economist, Alan Oster, noted that the data reflects a return to balance between supply and demand, with a decrease in inflationary pressures.
Among the ASX’s 11 sectors, seven finished higher and four closed lower. Health care was notably affected, with CSL experiencing a 2.9% drop—its worst day in ten months. CSL’s shares fell 4.6% to $294.78 following higher-than-expected operating expenses, despite a 20% increase in annual net profit.
Seek also declined, with shares dropping 6.6% to $20.66 after reporting a 26% decrease in annual profit, attributed to a fall in job ad volumes across the APAC region.
In contrast, Temple & Webster’s shares surged 23.3% to $11.71 after reporting a 26% increase in full-year revenue to $498 million. CEO Mark Coulter praised the results amid challenging cost-of-living conditions.
All major banks saw gains, with ANZ up 1.6% to $28.68, Westpac rising 1.1% to $28.52, CBA increasing 1.5% to $132.52, and NAB climbing 0.6% to $36.20.
Netwealth and Challenger had mixed results following their earnings reports. Netwealth’s shares fell 5.6% to $20.70, while Challenger’s increased 6.5% to $7.33.
In the mining sector, gold miners benefited from the surge in gold prices, with Newmont up 1.5%, Northern Star rising 1.7%, and Ramelius Resources gaining 5.8%. Conversely, lithium miners like Pilbara and Liontown faced declines of 4.4% and 5.8%, respectively.
The Australian dollar traded at 65.97 US cents, slightly up from 65.84 US cents the previous day. Other currency values were as follows:
- 97.55 Japanese yen, up from 96.91
- 60.34 euro cents, up from 60.30
- 51.53 British pence, down from 51.59
- 109.31 NZ cents, down from 109.53
Conclusion
In summary, the Australian share market continues its positive momentum, marking the third consecutive day of gains, driven largely by strong performances in banking and retail sectors. The S&P/ASX200 and All Ordinaries indices both edged higher, reflecting the market’s overall confidence despite some notable setbacks, particularly in the health care and technology sectors. The record-breaking rise in gold prices highlights the impact of global tensions, benefiting gold miners while posing challenges for lithium companies. Encouraging local economic indicators and improved consumer sentiment offer a hopeful outlook, balancing recent volatility. As the market adapts to these evolving dynamics, investors will be keenly watching for further shifts in economic and geopolitical landscapes.
