Good Afternoon and welcome to HotCopper’s Market Close for Tuesday 12th of August, I’m Jonathon Davidson.
(NOTE: This article was crafted and published for 3.30pm AEST; values may not reflect close post-settlement.)
Another gangbusters day for sentiment at least on the ASX as the RBA issued its third rate cut of 2025, bringing the cash rate down to 3.6%.
I recently spoke on the HotCopper Wire podcast about whether or not we would see the ASX200 hit 9,000 points by the end of the year; at this point, that call is looking conservative.
We’re very near that point by now, only last week did the ASX200 (XJO) cross 8,800pts for the first time. The All Ords surpassed 9,000pts earlier on.
Unlike July when a cut had been widely tipped, the bank to rule them all has agreed with the market, slipping in another cut not long after we got weaker than expected jobs data in Australia suggesting that the unemployment rate could be about to start rising.
That followed a headline CPI read at a happy-looking number of 2.1%; ignoring trimmed mean inflation, that means the RBA’s mandate to keep an eye on both CPI and jobs was pretty happily satisfied, leading to today’s decrease.
In the final hour of intraday trade, the XJO climbed to 8,879pts then pulled back, suggesting that for some, 8,800pts was far enough based on vibes.
Looking at sectors, financials led the boards in the final hour, with industrials the worst off. Note that may change once the market settles after this article was published.
Turning to companies in the green!
Singapore-based communications stock Tuas Limited (ASX:TUA) clocked top gainer status in the final hour climbing 27% to over $7 per share one day after it acquired Singapore’s M1, which offers retail and enterprise customers digital plans.
Elsewhere, Star Entertainment (ASX:SGR) bounced up +23% in the final hour as that company’s financial troubles look to be lessened with yet another fresh set of suitors seeking to help Star deal with a litany of assets it can’t afford to keep.
Finally, Electro Optic Systems (ASX:EOS) continued its strong run following a first of its kind deal last week that saw the company provide a NATO country a laser weapon system designed to take down swarms of drones.
Turning to the reds,
Liontown (ASX:LTR) slumped -8% on Tuesday only one day after appearing to come back to life on CATL’s Chinese lithium mine 3 month shutdown; LTR is currently unprofitable and being backed up by government funding. Pilbara Minerals and Vulcan Energy joined the reds, too.
Elsewhere, Digico Infrastructure REIT (ASX:DGT), a trust heavily invested in Data Centres, fell more than -7% in the final hour even after certifying one of its data centres with a state government on Tuesday. Alongside Spark NZ selling off 75% of its data centres today, the asset class appears to be on shaky ground.
Finally, IDP Education (ASX:IEL) was down more than -5% in the final hour, shedding off some recent gains as Canberra recently moved to let more foreign students into the country next year.
That’s Market Close for Tuesday, I’m Jon Davidson, have a great night and we’ll see you on Wednesday.
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