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Highlights
- ASX edges higher, led by consumer staples
- Woolworths and Coles shine after regulator report
- Critical minerals, healthcare, and tech under pressure
Australian shares were marginally higher at midday, buoyed by strength in supermarket stocks even as uncertainty surrounding the US economy kept overall gains in check. The S&P/ASX 200 added 0.1 per cent to reach 7923.8, building on the previous session’s momentum, which marked its best performance in six weeks. The broader All Ordinaries index also inched 0.1 per cent higher.
The consumer staples sector emerged as a bright spot following the release of a closely watched competition report. The regulator found that Australia’s leading supermarkets remain among the most profitable globally, but there was little concrete evidence of price gouging. This reassurance sparked strong gains, with (ASX:WOW) jumping 5 per cent and (ASX:COL) rising 3.2 per cent.
In contrast, investor sentiment was tempered by caution over the direction of US inflation and concerns related to ongoing trade tensions. These worries intensified after former President Donald Trump activated emergency powers to boost domestic production of critical minerals, prompting a decline in related Australian stocks. Coal miners took a hit, with (ASX:YAL) down 3 per cent and (ASX:WHC) falling 3.1 per cent. Broader resource names also faced pressure — (ASX:S32) lost 2.8 per cent, (ASX:LTR) dropped 4.7 per cent, and (ASX:PLS) slid 3.9 per cent.
Healthcare stocks were broadly weaker. Sector heavyweight (ASX:CSL) slipped 0.5 per cent, while (ASX:RMD) lost 1.2 per cent and (ASX:PME) fell 2.6 per cent. Technology also underperformed, with (ASX:WTC) declining 2.2 per cent.
Among notable movers, (ASX:PDN) dropped 3.4 per cent after temporarily halting operations at its Langer Heinrich Mine in Namibia due to access issues caused by heavy rainfall. (ASX:EMR) declined 3.5 per cent as its quarterly gold production fell short of expectations at the Okvau Mine.
Financial services group (ASX:LFS) eased 0.9 per cent as shares traded ex-dividend. Despite this, the company reported a 139 per cent surge in full-year cash profit for 2024, driven by strong demand for credit services.
On the positive side, (ASX:PMV) rose 3.4 per cent after updating investors on a 12.8 per cent fall in interim profit, which it attributed to tough retail conditions. However, strong performance from the Peter Alexander brand helped cushion the result.
Meanwhile, (ASX:C1M) advanced 2.3 per cent after announcing a $500 million bond issue aimed at reducing debt linked to its Monteverde subsidiary and broader corporate obligations.
Overall, gains in consumer staples helped offset weakness in resources, healthcare, and tech, leaving the ASX modestly higher as markets continue to navigate global uncertainties.
