AUS
NZ
UK
CA
USA
IND
Highlights
- Australian share market slows, weighed by healthcare sector.
- De Grey Mining (DEG) surges on $5 billion Northern Star (NST) deal.
- Retail sales show improvement, easing RBA rate cut concerns.
The Australian share market struggled to maintain momentum, edging towards a flat close after earlier gains nearly set a fresh record high. By mid-afternoon, the S&P/ASX 200 hovered at 8436 points, just shy of the 8477.1 peak it reached on Thursday. While the technology sector outperformed, gaining over one percent, declines in healthcare stocks, including CSL (ASX:CSL), counterbalanced those gains. CSL saw a drop of over one percent during the session.
The Australian Bureau of Statistics revealed a 0.6 percent rise in retail sales for October, a significant improvement from the 0.1 percent increase recorded in September. This growth exceeded market expectations of 0.4 percent, suggesting a stronger-than-anticipated recovery in consumer spending. Economists noted that the data could reduce the need for the Reserve Bank of Australia (RBA) to lower rates in the near term. Analysts highlighted that more consistent retail sales data would be needed to confirm whether the downside risk to consumption is subsiding.
The revised outlook comes amid projections by several financial institutions that the RBA may delay potential rate adjustments until later in the year. This shift reflects the easing of immediate concerns over weak consumption, supported by higher inflationary pressures in the services sector.
Key Stock Movements
Among the market highlights, De Grey Mining (ASX:DEG) soared nearly 30 percent after Northern Star Resources (ASX:NST) announced a $5 billion acquisition bid. The deal, driven by the rally in gold prices, values De Grey shares at $2.03 each. Meanwhile, Gold Road Resources (ASX:GOR) also experienced a surge, gaining close to 10 percent to $2.05 as the sector continued to benefit from favorable conditions.
In contrast, GQG Partners (ASX:GQG) fell over 10 percent after analysts adjusted the company’s rating to neutral and lowered its price target. The firm has faced scrutiny regarding its investment in Adani, linked to allegations of bribery by U.S. prosecutors.
Elsewhere, Netwealth (ASX:NWL) announced reaching $100 billion in funds under administration. Despite the milestone, its shares dipped over three percent. Meanwhile, Metcash (ASX:MTS), the IGA wholesaler, recorded a modest 3.5 percent rise in its stock price following earnings that met subdued expectations.
As trading concluded, mixed sector performances underscored the market's broader uncertainty, even as positive retail sales data offered some optimism.
