Soaring technology stocks and gains in the healthcare sector propelled the Australian sharemarket to its fourth consecutive day of growth, marking the strongest performance since mid-May. The benchmark ASX 200 recorded a modest gain of 10.80 points, or 0.13 percent, reaching a total of 8,617.30. Meanwhile, the broader All Ordinaries index climbed 12.70 points, or 0.14 percent, closing at 8,912.00. The Australian dollar also experienced an uptick, rising 0.21 percent to 65.35 US cents.
Despite the overall positive movement, the market lost some early momentum during Thursday’s trading session, having peaked at a two-week high of 8,649.30. Nine out of the 11 sectors finished in the green, indicating broad-based support for the market. Notably, the information technology sector exhibited robust growth, with shares in WiseTech soaring by 6.85 percent to $69.72. Xero also saw a significant increase, rising 2.29 percent to $123.15, while Technology One added 1.35 percent, reaching $30.12.
Healthcare and Commodity Trends
The healthcare sector was bolstered by the global biotech firm CSL, which rose 1.79 percent to $186.18. Pro Medicus, a company specializing in medical imaging technology, experienced a 2.01 percent increase, closing at $266.69. In the mining sector, gold miners continued their upward trajectory, fueled by expectations of potential US interest rate cuts, with the spot price of gold reaching $4,168 per ounce (approximately $6,380.36).
On the downside, energy and materials stocks faced challenges. BHP’s shares slipped by 0.19 percent to $41.74, while Fortescue dropped 0.93 percent to $21.30 and Rio Tinto fell 1.35 percent to $132.37. This decline occurred despite positive iron ore figures throughout the trading day.
Australia’s major banks displayed mixed results as the Australian Prudential Regulation Authority announced new macroprudential restrictions on home loans, set to take effect on February 1. Under these regulations, no more than 20 percent of a bank’s new loans can have a debt-to-income (DTI) ratio exceeding six. Commonwealth Bank of Australia (CBA) outperformed, gaining 0.47 percent to $154.24. In contrast, Westpac edged up just 0.08 percent to $37.89, NAB increased by 0.30 percent to $40.50, while ANZ underperformed, declining 0.14 percent to $35.08.
According to IG market analyst Tony Sycamore, the response from the major banks to the new regulations has been tepid. “There has been a mixed response from the big banks after APRA introduced new regulations to limit the number of ‘high-risk’ large loans being issued to customers, which could have flow-on effects in the housing market,” he stated.
Company News Highlights
In corporate news, shares of Suncorp fell 1.94 percent to $18.21 following reports of supercell thunderstorms that resulted in over 10,000 claims for the insurer. In contrast, shares in Reece surged by 4 percent to $12.73 as the company announced an on-market share buyback of up to $35 million, following the completion of a $365 million off-market buyback earlier in October.
On the other hand, Australian Ethical shares plummeted 11.15 percent to $5.74 after the Australian Prudential Regulation Authority imposed additional license conditions related to expenditure management on the super fund. The defence contractor DroneShield also experienced a setback, marking the largest decline on the ASX 200, with shares dropping 7.83 percent to $2.
Overall, the Australian sharemarket’s recent performance reflects a complex interplay of sector-specific trends and regulatory changes, shaping investor sentiment as the economic landscape evolves.
