The Australian share market opened the week on a cautious note, with the ASX 200 dipping 0.21% in early trade as investors weighed corporate updates, broker revisions, and shifting sentiment across sectors. While blue-chip stocks struggled to find direction, activity among small and micro-cap companies added an air of dynamism to the morning session.
Market Overview: ASX Slips on Mixed Sector Sentiment
As of 10:30 am AEST, the benchmark ASX 200 traded slightly lower, reflecting investor caution ahead of economic data releases and global market cues. The index struggled to find momentum as mining heavyweights and energy stocks pulled back, offsetting gains in select tech and financial names.
Pexa Group (ASX: PXA) led the large-cap gains, rising 4.60% to $12.74, buoyed by investor optimism around the company’s continued growth in digital property settlements. Gold producers also outperformed, with Newmont Corporation (ASX: NEM) and Regis Resources (ASX: RRL) gaining 4.15% and 2.70% respectively, amid steady gold prices.
On the downside, coal miner New Hope Corp (ASX: NHC) fell 5.73% to $3.71, following a soft commodity price outlook and fading momentum in the energy sector. Breville Group (ASX: BRG) and Champion Iron (ASX: CIA) also retreated sharply, shedding 4.46% and 4.39% respectively.
Small Cap Moves: OFX and Tamboran Steal the Spotlight
Among small caps, currency transfer specialist OFX Group (ASX: OFX) surged 15.04% to $1.30, leading the charge after investors responded positively to recent operational updates and speculation around potential strategic partnerships. Tamboran Resources (ASX: TBN) followed closely with a 10.47% rise to $0.19 amid renewed interest in its Beetaloo Basin gas projects.
Electro Optic Systems (ASX: EOS) gained 8.91% to $1.41 after announcing a fresh 31 million euro (A$53 million) Remote Weapon System (RWS) order, adding momentum to its recent contract wins.
Meeka Metals (ASX: MEK), Astral Resources (ASX: AAR), and Tivan (ASX: TVN) also made notable gains between 6–8%, reflecting improved sentiment in the junior resources space.
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However, the session was not without its casualties. Clarity Pharmaceuticals (ASX: CU6) fell 8.60% to $2.29, while Coronado Global Resources (ASX: CRN) and Lotus Resources (ASX: LOT) dropped more than 7% each. Lithium-exposed names like Patriot Battery Metals (ASX: PMT) and Piedmont Lithium (ASX: PLL) were also under pressure, declining around 6% amid ongoing market softness in the battery metals sector.
Corporate Headlines: Dicker Data CEO Steps Down, Gentrack Posts Mixed Results
Dicker Data (ASX: DDR) shares experienced a rollercoaster morning, initially dipping 3.6% before rebounding to post a 2% gain by 10:19 am. The volatility followed the announcement that founder and long-time CEO David Dicker will step down from all executive roles to pursue other interests.
Despite the leadership shakeup, investor sentiment improved following reassurance from the company that an experienced executive trio—Vladimir Mitnovetski, Mary Stojcevski, and Ian Welch—will guide the business forward. All three have demonstrated confidence by purchasing shares on-market in recent months.
Meanwhile, Gentrack (ASX: GTK) delivered its 1H25 results, reporting a 9.8% increase in revenue to $112 million and a 5.1% rise in EBITDA to $13 million. However, the lack of clarity in full-year guidance and a slight miss relative to Citi estimates led to subdued market response. The firm expects FY25 revenue of at least $230 million, slightly below Citi’s forecast of $240 million.
Takeover Buzz: Xanadu Mines in Play, Matrix Gets Proposal
The microcap space saw takeover activity heating up. Xanadu Mines (ASX: XAM) announced a bid implementation agreement with Bastion Mining, with Bastion offering 8 cents per share—a 56% premium to Xanadu’s last closing price.
Separately, Matrix Composites & Engineering (ASX: MCE) disclosed it had received a highly conditional, small non-binding proposal from Advanced Innergy Solutions. While the offer remains confidential and small preliminary, it sparked early interest in the company’s shares.
Broker Updates: Xero and Temple & Webster See Upgrades
In morning broker notes, UBS reiterated its ‘Buy’ rating on Xero (ASX: XRO) and small lifted its target to $215 from $196, citing strong underlying metrics. Temple & Webster (ASX: TPW) was upgraded to ‘Hold’ with a revised target of $21, reflecting improved operating leverage.
Resolute Mining (ASX: RSG) was another beneficiary, with Macquarie raising its target price to $0.65 from $0.55 on continued operational improvements.
On the flip side, Fletcher Building (ASX: FBU) retained an ‘Underperform’ rating with a lowered target of $1.85, while Insurance Australia Group (ASX: IAG) was downgraded to ‘Neutral’ despite a target price increase to $9.30.
Lendlease Reshapes UK Exposure Through JV with Crown Estate
Lendlease (ASX: LLC) announced a new 50/50 joint venture with The Crown Estate, transferring its UK development assets into the partnership. While the transaction had been flagged last week, confirmation pushed the company closer to its $2.8 billion capital recycling target for FY25, with $2.5 billion now achieved.
Lendlease will serve as development manager for the JV, earning performance-based fees while maintaining flexibility on future project commitments. The move supports potential buybacks and underpins valuation recovery, given the stock’s discount to net asset value.
Looking Ahead
With Monday’s session already revealing leadership changes, M&A activity, and a small flurry of small-cap moves, investors are eyeing upcoming economic data and global market small trends for further cues. The ASX 200’s early weakness suggests caution remains the dominant tone, small but pockets of opportunity—particularly in tech and gold—may offer selective upside as the week small unfolds.
