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Highlights
- Australian sharemarket nears record highs with tech stocks leading gains.
- Retail sales in Australia rise by 0.6%, beating expectations.
- Key developments include mergers, downgrades, and mixed stock performances.
The Australian sharemarket is approaching its third record high in a week, bolstered by a strong performance in technology stocks and positive economic data. The S&P/ASX 200 rose 19 points to 8455 points, nearing the 8477.1 record set earlier. Technology stocks led the surge with a gain of 1.1%, driving the broader index higher.
The market has gained momentum following optimism surrounding potential regulatory easing and tax reforms under the leadership of US President-elect Donald Trump. His nomination of Scott Bessent as Treasury Secretary has fostered optimism regarding measured tariff policies, contributing to a global rally. The S&P 500 hit an all-time high last week, with the US benchmark index rising by 5.7% in November. Concurrently, the S&P/ASX 200 saw a monthly rise of 3.4%, its strongest since July.
In local economic news, the Australian Bureau of Statistics reported retail sales growth of 0.6% in October, up from a 0.1% increase in September. This result exceeded market expectations of a 0.4% rise, highlighting resilience in consumer spending despite broader economic challenges.
Stocks Making Waves on the ASX
Northern Star Resources (ASX:NST) announced its agreement to acquire De Grey Mining (ASX:DEG) for $5 billion amid rising gold prices driving sector consolidation. De Grey Mining shares jumped nearly 30% to $1.93, nearing the $2.03 value implied by the deal. Similarly, Gold Road Resources (ASX:GOR) surged by 9.9% to $2.05, reflecting positive sentiment in the gold sector.
On the downside, GQG Partners (ASX:GQG) fell over 10% following a downgrade to “neutral” and a price target cut by UBS. The decline was attributed to scrutiny surrounding the company's investment in Adani Group, whose founder faces allegations of bribery.
Meanwhile, Netwealth Group (ASX:NWL) saw its shares decline by 3.3% to $29.78 despite announcing a milestone of $100 billion in funds under administration. The stock remains a strong performer, having nearly doubled in value since the beginning of the year.
Metcash Limited (ASX:MTS), a leading IGA wholesaler, reported underlying profit growth for the six months ending October, meeting analysts' adjusted forecasts. Shares rose 3.5% to $3.23, reflecting market approval of the results.
The combination of corporate developments and encouraging economic data continues to shape the Australian market’s trajectory, drawing attention to key movers and the broader macroeconomic landscape.
