Good Afternoon and welcome to HotCopper’s market close for Tuesday, I’m Jon Davidson. It was looking like a good day early morning with the bourse returning to the 8,700s, but then Commonwealth Bank sold off, underscoring that we really are not far off being a Mag1 market.
CBA’s decline has come in the wake of iron ore prices around US$104/tn in Singapore, and that’s being driven by China’s construction of a megadam in Tibet. In turn, BHP shot up, pointing towards a materials rotation out of what is widely accepted to be an overvalued CBA.
Of course, that has implications for the ASX. In the final hours of trade, the bank’s market cap dipped below $290 billion Australian dollars, and that’s why we dipped back into the red. Flattish red, mind you, but red all the same.
Should Commonwealth undergo a correction, many analysts expect the ASX200 to seriously stumble on its way to a potential 9,000 points by the end of year. It’ll be interesting to see what happens on August 1. In the last hour of the Australian trade, US futures were flat.
But that’s enough of that. Turning to sectors, Health Care was in the lead as CSL popped out of nowhere, financials not surprising anybody as the worse off.
But what companies were in the green?
Pantoro Gold led the gainers in the final hour as gold prices strengthened once again on safe haven demand as we approach what is meant to be the White House’s re-imposition of global sweeping tariffs.
Elsewhere, Insignia Financial firmly jumped into the green on Tuesday as CC Capital finally decided to buy the wealth manager after eight months of deliberations.
Finally, mining technology provider IMDEX jumped into the green on Tuesday on no news but presumably uplifted by what has been a strong signal for materials stocks on Tuesday.
And so what about the reds?
Strike Energy, by far the most popular stock on HotCopper through 2024, sunk after it revealed WA-based Carnarvon Energy will buy nearly one fifth of the company. While that would otherwise be good news, Strike is offering that stake at around 12 cents per share – less than where it was on Monday.
Elsewhere, antimony junior Larvotto Resources sold off as momentum for that stock perhaps waned in the face of bigger gains to be had in materials stocks elsewhere.
Finally, Syrah Resources joined the day’s biggest fallers as profit takers skimmed off the top of what has been Trump-led gains following the announcement of graphite tariffs last week.
That’s Market Close for Tuesday, I’m Jon Davidson, have a great night and we’ll see you tomorrow.
Note: Information for this summary was collected between 1.15 and 1.30pm AWST.