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Australian Market Update – 2 July 2025
The S&P/ASX 200 Index concluded the trading session up by 56 points, equivalent to an increase of 0.66%, marking its highest close surpassing the previous peak set on 11 June.
Key Highlights:
- The ASX 200 achieved record levels, driven primarily by broad participation across various sectors, particularly resources and defensive stocks, diverging from the usual bank and tech-driven rallies.
- Retail sales data for May showed a modest month-on-month rise of 0.2%, falling short of expectations (0.4%), while industrial activity showed persistent weaknesses.
Market Overview
Date: Wednesday, 2 July 2025
Time: 4:16 PM (AEST)
Major Indices Performance
| Index | Closing Value | Change |
|---|---|---|
| ASX 200 | 8,597.7 | +0.66% |
| All Ordinaries | 8,828.7 | +0.65% |
| Small Ords | 3,254.8 | -0.20% |
| All Tech | 4,036.5 | +0.25% |
| Emerging Companies | 2,290.9 | -0.21% |
Currency Snapshot
| Currency | Value | Change |
|---|---|---|
| AUD/USD | 0.6578 | -0.09% |
US Futures Overview
| Index | Value | Change |
|---|---|---|
| S&P 500 | 6,266.75 | +0.29% |
| Dow Jones | 44,908.0 | +0.23% |
| Nasdaq | 22,775.5 | +0.36% |
Sector Performance
The market displayed healthy movement across most sectors:
- Materials led the charge with a significant rise of 1.83%, propelled by a rebound from recent lows; notable stocks included South32 (+5.0%) and Fortescue (+3.8%).
- Real Estate was also favourable with a gain of 1.77%, spurred by expectations of potential RBA interest rate cuts, enhancing the appeal of REITs.
- Conversely, the Information Technology sector faced challenges, dropping 0.73% as market sentiment shifted from last financial year’s high-flyers.
Economic Insights
The AI Group Industry Index fell slightly to -11.9 in June, indicating ongoing challenges in Australian industry:
- Input costs and wages moderated, suggesting easing inflationary pressures.
- A notable drop in new orders and subdued sales pointed towards weakened demand, particularly in manufacturing.
- In retail, sales growth remained modest, with clothing and department stores being the only bright spots, while food-related spending declined.
Noteworthy Stock Movements
Gainers:
- Perpetual (PPT): +8.53% following a UBS upgrade.
- Platinum Asset Management (PTM): +8.15%, also benefitting from a UBS upgrade.
Losers:
- Helia Group (HLI): -20.80%, as ING sought an alternative provider, impacting a significant portion of gross written premiums.
- Domino’s Pizza Enterprises (DMP): -15.32%, following the resignation of its CEO.
Broker Updates
- AIC Mines (A1M): Maintained at Buy; Price Target adjusted to $0.70 from $1.10.
- Aussie Broadband (ABB): Initiated at Outperform; Target Price set at $5.05.
- AMP (AMP): Neutral rating maintained with an updated Price Target of $1.35.
Summary
The Australian stock market demonstrated resilience, achieving record highs amid evolving economic signals and sectoral rotations. The strength in materials and real estate contrasted with the weakness in technology and industrial sectors. Ongoing developments in global policies and local economic indicators suggest a landscape ripe for opportunities, albeit marked with some volatility.
As investors eye future RBA movements and market adjustments, the ASX continues to show robust potential underpinned by broader participation and sectoral strength.
