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Highlights
- Australian sharemarket nears record highs, driven by banks and health stocks.
- Strong gains observed in (CBA), (CSL), and crypto-related stocks.
- Key corporate moves include IAG's acquisition and AVJennings’ buyout offer.
The Australian sharemarket is edging closer to its second record high this week, showing resilience despite a lackluster performance on Wall Street. The S&P/ASX 200 Index rose by 0.4%, reaching 8442.7, just shy of its record of 8462.1 touched earlier this week. Gains in banking and healthcare stocks have propelled the index upward, counteracting global market pressures.
Banking stocks continue to be a driving force behind the index's performance. Shares of Commonwealth Bank (ASX:CBA) climbed 0.7%, trading at $158.87. Health stocks also contributed significantly, with (ASX:CSL), Pro Medicus, and ResMed all advancing by more than 1%.
The uptick comes despite overnight declines on Wall Street. The Dow Jones Industrial Average fell by 0.3%, the S&P 500 slipped by 0.4%, and the Nasdaq dropped by 0.6%, weighed down by disappointing earnings reports from Dell and HP. Both tech companies saw their shares drop sharply by 12%.
Corporate Developments Drive Momentum
The Australian market also witnessed key corporate announcements. IAG (ASX:IAG) made headlines by agreeing to acquire the insurance underwriting business of Queensland’s RACQ for $855 million. This news lifted IAG’s shares by 3.8%, with the stock trading at $8.49.
Real estate developer AVJennings (ASX:AVJ) surged following a $370 million buyout offer from Proprium Capital Partners and Avid Property Group. The stock nearly doubled in value to 65¢, reflecting strong investor interest in the deal.
Fisher & Paykel Healthcare (ASX:FPH) reported solid growth in its revenue and profits for the first half of the financial year. Despite this, shares retreated 2.4% to $33.75, with the company attributing its performance to a return to normal staffing levels and hospital capacity utilization.
Star Entertainment (ASX:SGR), however, faced challenges, reporting an earnings loss of $27 million for the first four months of the financial year. The stock fell 2.4% to 20.5¢.
Meanwhile, Dexus (ASX:DXS) completed the sale of two office properties for $443.2 million, generating net proceeds of $336.3 million. This boosted its shares by 1.3%.
Crypto Stocks Rebound
Bitcoin’s partial recovery to above $US97,000 brought relief to crypto-related stocks. Sydney-based bitcoin miner Iren (ASX:IREN) saw an impressive surge of 32%, reflecting renewed investor confidence in the sector.
This blend of sectoral strength and corporate activity has placed the Australian sharemarket on a solid trajectory, nearing record territory once again.
