The Australian sharemarket reset its all-time high for a second consecutive session on Monday. The ASX 200 Index added 0.3 percent, or 23.8 points, to 8417.60, eclipsing Friday’s record close. The gauge is up nearly 3 percent this month with investors optimistic about the incoming administration.
The All Ordinaries also rose 0.3 percent. Of the 11 sectors, seven climbed on Monday. Real estate was the best performer, advancing 3.3 percent to $2.11.
Vicinity Centres added 2.3 percent to $2.19, and Goodman Group rose 1.5 percent to $37.81. The energy sector also pushed higher as oil prices held recent gains amid tensions in the Ukraine-Russia conflict, jumping 1.2 percent to $25.36. Meanwhile, coal miners struggled, and the mining heavyweights had a mixed trading session despite stronger iron ore prices.
Financials also weighed down due to high household debt, persisting cost-of-living pressures, and a weakening jobs market. While the regulator’s update contributed to the banks’ subdued tone, profit-taking was more likely the main driver, according to Ryan Felsman, chief economist at ComSec. Banks have rallied 6 percent in November.
ANZ fell 1.3 percent to $31.83, National Australia Bank lost 1.2 percent to $39.61, and Westpac shed 1.2 percent to $33.41.
ASX 200 hits a second high
Commonwealth Bank, however, bucked the trend, extending its record run with a fresh intraday high of $160.27, ending the session up 0.7 percent at $160.14.
Bendigo and Adelaide Bank fell 1.7 percent to $13.37 as profit-takers swooped in. The shares had hit a 10-year peak last week after the government proposed a regional bank branch and ATM levy benefiting Bendigo due to its substantial rural branch network. Bell Financial dropped 3.8 percent to $1.265 after it sweetened its takeover bid for retail broker Selfwealth by 3¢ to 25¢ a share.
Selfwealth shares lifted 4 percent to 26¢. SG Fleet Group rocketed 18 percent to $3.16 after Pacific Equity Partners made a takeover bid at $3.50. Air New Zealand leapt 3.2 percent to 49¢ after indicating that first-half earnings would turn positive following delays in receiving planes and engines.
Despite these gains, some stocks faced challenges. Payments infrastructure business EFTPOS tumbled 7.6 percent to $2.31 on its first day of trading, closing below its IPO price of $2.50. Dairy company Synlait Milk dropped 4.1 percent to 35.5¢ despite raising its milk price forecast for the 2024/2025 season.
The energy sector’s rise was supported by higher oil prices due to tensions in the Ukraine-Russia conflict. Meanwhile, iron ore prices rallied on increased demand from China, although the mining sector showed mixed results due to choppy trading. The positive trajectory in the Australian sharemarket is largely driven by investor optimism, particularly in real estate and energy sectors.
However, the outlook for financials remains cautious due to underlying economic challenges.
