AUS
NZ
UK
CA
USA
IND
Highlights
- Big banks and utility stocks lift ASX near record highs
- Nufarm and Mayne Pharma drag after company-specific updates
- Market eyes next RBA decision after surprising rate cut
Australia’s benchmark index rallied on Wednesday afternoon, buoyed by strong performances from the nation’s major banks and utility companies. The S&P/ASX 200 gained 0.9%, adding 74.7 points to reach 8418 around midday—just 2% shy of its all-time high. The broader All Ordinaries mirrored this rise with a 0.9% increase.
Ten of the eleven sectors were in positive territory, led by utilities and financials. Optimism followed the Reserve Bank of Australia's recent decision to lower interest rates to 3.85%, sparking market speculation that further monetary easing could be on the horizon.
The RBA's unexpected openness to a deeper 50 basis point rate cut has created buzz in financial circles. The July 8 board meeting is now seen as a potential pivot point, with fixed income markets pricing in a heightened chance of continued easing.
Among the standout performers, Commonwealth Bank of Australia (ASX:CBA) extended its record-breaking run, climbing 2.2%. National Australia Bank (ASX:NAB) added 2.4%, while Westpac Banking Corporation (ASX:WBC) rose 1.1%, even as reports emerged about plans to reduce its workforce by more than 1,500 roles.
In the utilities space, Origin Energy (ASX:ORG) jumped 2% and APA Group (ASX:APA) advanced 2.3%. Healthcare stocks also saw gains, with ResMed Inc. (ASX:RMD) up 4.7% and Fisher & Paykel Healthcare Corporation (ASX:FPH) climbing 2.9%.
While broader sentiment remained upbeat, several individual stocks faced headwinds. Nufarm Ltd (ASX:NUF) dropped 28.1% after revising its earnings outlook downward. The agricultural chemical company cited reduced profits, impacted by lower fish oil prices and increased costs.
Mayne Pharma Group Ltd (ASX:MYX) tumbled 31% after its prospective acquirer, Cosette Pharmaceuticals, raised concerns about a potential material change in the company’s financial standing since making its $672 million offer.
Meanwhile, James Hardie Industries plc (ASX:JHX) fell 7% as it acknowledged softer-than-expected demand in the U.S. renovation market. This comes as the building materials company continues to pursue a $14 billion acquisition of Azek.
Elsewhere, Catapult Group International Ltd (ASX:CAT) surged 10.2% after reporting a 19% lift in revenue to US$116.5 million, helping narrow its annual loss. Adriatic Metals PLC (ASX:ADT) soared 23.9% amid news it is in due diligence talks with Dundee Precious Metals regarding a potential acquisition.
In contrast, Resimac Group Ltd (ASX:RMC) fell 2.9% after facing legal action from ASIC over allegations related to hardship applications management.
As the ASX300 pushes toward historic highs, income-focused investors are also revisiting potential opportunities in ASX dividend stocks, especially within the financial and utilities sectors, which remain central to the current momentum.
With global economic uncertainty and monetary policy shifts in focus, the coming weeks may continue to drive volatility and sector rotation within the ASX300 landscape.
