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Highlights
ASX closed slightly higher, with the property sector leading gains.
Mirvac Group and Dexus rose over 2.3% due to improved financing conditions.
Origin Energy halted its hydrogen hub project citing slow market development.
The ASX traded in a narrow range today, closing slightly higher as investors remained cautious due to ongoing geopolitical tensions in the Middle East and marginal gains in the US markets. The property sector led the way, rising 1.4%, with key players like Mirvac Group (ASX:MGR) and Dexus posting gains of over 2.3%. Other property stocks such as Goodman Group (ASX:GMG), Scentre, Stockland, and GPT Group (ASX:GPT) also advanced by more than 1%.
The positive performance in the property sector was supported by a ratings update from analysts at Barrenjoey, who expressed optimism about the financing environment for commercial property in Australia. According to Barrenjoey, "materially lower swap rates, tighter margins for new debt, and an increased willingness of banks to lend" have contributed to a more favorable environment for the sector.
In contrast, Utilities lagged behind, falling 0.41%, with Origin Energy (ASX:ORG) and APA Group (ASX:APA) leading the declines. Origin Energy announced it would no longer pursue plans for a hydrogen hub in the Hunter Valley, citing the slow development of the hydrogen market and risks associated with capital-intensive projects.
CEO Frank Calabria explained that although the company worked hard to evaluate the hydrogen investment, factors such as input costs and technological hurdles meant there was no clear path forward for the project. While the decision disappointed local businesses and workers involved in hydrogen development, Calabria reiterated that Origin still sees a future role for hydrogen in the broader energy mix.
As market conditions shift, the performance of individual sectors and companies continues to reflect both domestic developments and global influences, with property stocks benefiting from improved financing and energy companies navigating complex transitions in the renewable space.
