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Highlights
- Consumer stocks rally as regulatory findings boost confidence in (ASX:WOW) and (ASX:COL).
- Resource sector faces pressure following US policy moves on critical minerals.
- Corporate movements impact stocks like (ASX:DHG), (ASX:PDN), and (ASX:EMR).
The Australian share market experienced volatility on Friday, oscillating between gains and losses as strength in consumer stocks balanced against broader market concerns. Investor sentiment remained mixed, influenced by uncertainty regarding the US economic landscape, inflation trends, and trade policies.
The S&P/ASX 200 climbed 0.3%, adding 20.7 points to reach 7939.6 within the first trading hour, despite opening in negative territory. Consumer staples emerged as a bright spot, leading sectoral gains, while resources and healthcare stocks struggled. The All Ordinaries Index edged up 0.1%, reflecting the cautious market mood.
Consumer Stocks Rally on ACCC Report
A key driver for consumer staples was the release of a long-anticipated report by the Australian Competition and Consumer Commission (ACCC). The report highlighted that Australian supermarkets, particularly (ASX:WOW) and (ASX:COL), rank among the world’s most profitable grocery retailers, with little evidence of price inflation beyond market forces.
This development bolstered investor sentiment in the sector, pushing (ASX:WOW) 3.2% higher and (ASX:COL) up by 1.6%.
Resource Stocks Weighed Down by US Policy Shift
The broader market faced pressure as resource and mining stocks pulled back following US policy announcements. The US administration’s move to invoke emergency powers to boost domestic production of critical minerals, including coal, raised concerns about future demand for Australian exports.
Coal miners (ASX:YAL) and (ASX:WHC) declined 1.8% and 2%, respectively. Other resource sector players also faced downward pressure, with (ASX:S32) and (ASX:LTR) both dropping 4.3%, and (ASX:PLS) retreating 3.5%.
Healthcare Sector Struggles
Healthcare stocks were broadly weaker, with major names facing declines. Sector leader (ASX:CSL) dipped 0.5%, while (ASX:RMD) lost 1.2% and (ASX:PME) shed 2.6%.
Corporate Movements Impact Individual Stocks
Among corporate developments, (ASX:NEC) gained 0.6% after confirming discussions regarding a potential stake sale in (ASX:DHG) to US-based CoStar Group. This news lifted (ASX:DHG) by 1.6%.
Meanwhile, (ASX:PDN) plunged 8.2% after temporarily shutting its Langer Heinrich Mine in Namibia due to heavy rainfall affecting site access. Similarly, (ASX:EMR) slid 4.7% as its Okvau Gold Mine reported output below expectations.
In financials, (ASX:LFS) dropped 3.9% as it traded ex-dividend, despite reporting a 139% jump in annual profit, driven by increased credit demand.
On a positive note, (ASX:CSC) climbed 2% after announcing a $500 million bond issuance to refinance project debts and strengthen its financial position.
With market sentiment swaying between cautious optimism and global economic concerns, investors remained watchful of further economic cues from the US.
