AUS
NZ
UK
CA
USA
IND
Highlights
- ASX heads for strongest weekly performance of the year
- Woolworths and Coles rally after regulatory findings
- Resource and tech sectors face downward pressure
The Australian sharemarket is poised to record its best week of 2024, with a sharp rally in supermarket giants helping the ASX maintain momentum despite global economic uncertainty and pressure on resource and tech stocks.
By early afternoon on Friday, the S&P/ASX 200 was up 0.5% or 36.9 points, trading at 7955.8. This places the index firmly on track to snap a four-week losing streak. Gains were recorded in seven of the 11 sectors, while the broader All Ordinaries climbed 0.4%.
Investor focus shifted to supermarket leaders following a report from the competition regulator. The findings confirmed Woolworths and Coles as among the most profitable supermarket chains globally but found little evidence supporting accusations of widespread price inflation. This reassured markets and boosted confidence in consumer staples.
Woolworths (ASX:WOW) jumped 5.7% in afternoon trade, while Coles (ASX:COL) advanced 4.3%, helping drive the broader market higher.
However, the broader mood remained cautious amid ongoing concerns about global inflation trends. Fresh uncertainties were triggered by the latest US moves under the Trump administration. The decision to invoke emergency powers to ramp up domestic critical mineral production raised prospects of reduced demand for imports from key suppliers like Australia.
This led to pressure on mining and energy stocks. Iron ore prices slipped below the US$100-a-tonne mark, impacting major players. Yancoal (ASX:YAL) and Whitehaven Coal (ASX:WHC) declined by 1.7% and 2.8%, respectively. Broader resource names also suffered, with South32 (ASX:S32) down 3.2%, Liontown Resources (ASX:LTR) falling 5.7%, and Pilbara Minerals (ASX:PLS) retreating 4.3%.
Healthcare and technology sectors weren’t immune to the risk-off sentiment either. Pro Medicus (ASX:PME) fell 5.3%, while Sigma Healthcare (ASX:SIG) slid 2.4%. Tech logistics platform WiseTech Global (ASX:WTC) dipped 1.6%.
Elsewhere, Paladin Energy (ASX:PDN) dropped 4% following a temporary closure of its Langer Heinrich Mine in Namibia due to flooding. Emerald Resources (ASX:EMR) declined 4.6% after its Okvau Gold Mine posted quarterly output below expectations.
Latitude Group (ASX:LFS) slipped 2.4% as its shares traded ex-dividend, despite a strong 139% rise in full-year profit, fuelled by stronger credit demand.
Among the gainers, Premier Investments (ASX:PMV) rose 4.1%, reporting that despite a 12.8% fall in interim profit, its Peter Alexander brand recorded sales of $297.7 million. Capstone Copper (ASX:CSC) also edged up 1.8% after revealing plans to issue $500 million in bonds aimed at refinancing its subsidiary Monteverde’s debt.
As the trading week nears its close, strong performances in consumer staples have kept the ASX on a positive trajectory, even as global headwinds weigh on some key sectors.
