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Highlights
- ASX rose amid anticipation of Australia’s upcoming inflation data.
- Major banks expect the lowest inflation rate since early 2021.
- Consumer Discretionary sector led gains, with notable small-cap movers.
The Australian Securities Exchange (ASX) closed higher today, gaining 0.37% or 30.6 points, to reach 8,252.1 points. Investors are keenly awaiting inflation data from the Australian Bureau of Statistics (ABS), expected to reveal a consumer price index (CPI) of 2.9% for the September quarter. This projected figure, if met, would mark the lowest annual rate since the March quarter of 2021, a substantial drop from its 7.8% peak at the close of 2022.
Reserve Bank of Australia (RBA) governor Michele Bullock has emphasized the bank’s focus on underlying inflation— a measure that excludes volatile price fluctuations. The upcoming data will play a significant role in shaping the RBA's decisions on interest rates, as the central bank assesses inflation patterns across core economic segments.
Today’s ASX growth was spearheaded by the Consumer Discretionary sector, which outperformed other areas. News of Myer’s (ASX:MYR) acquisition of apparel brands from Premier Investments, including Just Jeans, Portmans, and Dotti, sparked investor interest. This acquisition triggered a 9.75% increase in Premier Investments’ (ASX:PMV) share price, which closed at $33.89 per share. However, Myer’s own stock fell over 2% to $0.95, as shareholders appeared cautious about the transaction’s long-term impact on Myer’s portfolio.
The Materials sector also showed strength, while Utilities and Energy lagged, reflecting a varied market response as investors balance defensive and growth sectors in the face of economic uncertainties.
Major Market Developments: BlueScope Steel Update
In the Materials sector, BlueScope Steel (ASX:BSL) announced a revision to its profit forecast for the first half of the fiscal year, citing economic headwinds. The steelmaker adjusted its earnings before interest and tax (EBIT) expectations to between $270 million and $310 million, down from a previous range of $350 million to $420 million. BlueScope’s revised forecast reflects ongoing industry challenges, including record levels of steel exports from China, rising inflationary pressures, and political uncertainty in the United States ahead of the presidential election.
Small-Cap Highlights
Small-cap stocks also saw significant activity, with multiple companies posting substantial gains. Dynamic Metals Ltd (ASX:DYM) led the pack with a 15.38% increase, closing at $0.225. Piedmont Lithium (ASX:PLL) followed closely, rising 13.89% to $0.205, and FireFly Metals Ltd (ASX:FFM) recorded an 11.85% gain to $1.18 following a resource update for the Green Bay Copper-Gold Project.
Other small-cap movers included Polymetals Ltd, which reached a record high of $0.625, marking an 11.61% increase from the previous close. Galileo Mining Ltd (ASX:GAL) climbed 10.71% to $0.155, and Element 25 Ltd (ASX:E25) rose 6.8% to $0.31 on news of an updated manganese resource estimate.
Today’s ASX performance underscores the market's anticipation of key inflation data and its potential impact on various sectors. With the RBA's focus on inflation metrics, tomorrow's data could influence investor sentiment across the ASX’s major indices.
