AUS
NZ
UK
CA
USA
IND
Highlights
- Supermarket giants lead gains, lifting ASX slightly higher.
- Gold miners edge up as metal prices stabilize near record highs.
- WiseTech continues to drag tech shares lower amid recent controversies.
Australian shares are trading modestly higher, driven by gains from supermarket giants and gold miners, as the S&P/ASX edges up by 0.1%, following a sharp downturn in the previous session. The index saw a partial recovery after Monday’s 1.7% drop, which was caused by recalibrations of expectations regarding potential rate cuts from the Reserve Bank of Australia and the US Federal Reserve.
The tentative recovery on the ASX comes on the back of mixed performance in the US markets, where the Nasdaq 100 managed a slight 0.1% gain, while the Dow Jones and S&P 500 ended relatively flat.
Supermarket giants Coles Group Ltd (ASX:COL) and Woolworths Group Ltd (ASX:WOW) are contributing to the uptick, both rising around 1.2%. This follows their involvement in a court case related to allegations from the Australian Competition and Consumer Commission, accusing the retailers of misleading customers on several promotional deals. Despite the legal proceedings, the stocks remain resilient and have boosted the consumer staples sector by 1%.
Gold miners have also added to the market’s overall gains, with companies such as Bellevue Gold Ltd (ASX:BGL), Genesis Minerals Ltd (ASX:GMD), and Perseus Mining Ltd (ASX:PRU) rising as much as 2%. This increase comes as gold prices stabilize near record highs, spurred by ongoing geopolitical tensions in the Middle East. Additionally, uncertainties surrounding the upcoming US presidential election have also driven interest in gold, seen as a traditional safe-haven asset.
Tech and Other Stocks Facing Challenges
However, the tech sector continues to face challenges, with WiseTech Global Ltd (WTC.AX) extending its recent decline. The stock is down 1.5% to $106.02, following a 15% drop over the past week. The ongoing fall is tied to revelations about the company's founder, Richard White, involving a personal relationship with an employee and gifting a luxury waterfront mansion worth $7 million. These developments have added pressure to the tech sector, which has struggled in the wake of these controversies.
Mineral Resources Ltd (ASX:MIN) is also facing headwinds, with shares down 2.7% to $36.84. Reports have surfaced regarding the company’s CEO, Chris Ellison, being involved in a tax evasion scheme for a decade. The Australian Securities and Investments Commission (ASIC) is reportedly investigating the allegations, contributing to the stock's decline.
Meanwhile, Domain Holdings Australia Ltd (ASX:DHG) shares have fallen 1.3% after CEO Jason Pellegrino announced his resignation. The company, valued at $1.96 billion, has seen its shares slip amid the leadership transition.
Other Market Movements
Jewelry retailer Michael Hill International Ltd (ASX:MHJ) saw its shares rise by 2% following a positive sales report, showing a 4% increase in same-store sales over the first 14 weeks of the new financial year compared to the same period last year.
QBE Insurance Group Ltd (ASX:QBE) fell slightly by 0.6%, amid allegations by the Australian financial watchdog that the company misled customers regarding discounts. In contrast, shares of Qantas Airways Ltd (QAN.AX) rose 3.3% after analysts at Citi raised their price target for the airline, citing improved outlooks.
On the downside, 29Metals Ltd (ASX:29M) shares plunged 16.8% after the company reported a sharp decline in its cash reserves in its latest quarterly report.
