The Australian share market rallied again on Friday, continuing a remarkable winning streak and edging closer to its all-time high set earlier this year. As of 11:05 am AEST, the benchmark S&P/ASX 200 rose by 0.87%, slightly retreating from its early-session peak of 1.15%. The index is on track to post its eighth straight daily gain, buoyed by strength in defensive and materials sectors.
Broad-Based Gains with Materials, Healthcare in Focus
The rally was largely driven by positive sentiment across key sectors. Materials led the charge with a 1.8% increase, followed closely by Healthcare, Real Estate, and Industrials—all up by around 1.2%. The momentum reflects similar patterns seen overnight on Wall Street, where investors rotated into safer sectors amid lingering global uncertainties.
Gold miners were particularly prominent among early gainers, benefiting from a steady rise in bullion prices. Among the top performers on the S&P/ASX 200 were Regis Resources (+4.67%), Evolution Mining (+4.67%), and Perseus Mining (+4.32%). These companies saw renewed investor interest as safe-haven assets gained traction.
Small Cap Spotlight: Appen Soars After Update
Small cap stocks delivered some standout performances. Artificial intelligence services provider Appen (ASX: APX) surged an impressive 19.11% to $1.47 after releasing its AGM update. The company provided FY25 revenue guidance between $235 million and $260 million, aligning with market expectations. Appen also laid out long-term growth plans targeting a 20% compound annual growth rate in revenue through FY27 and an underlying EBITDA margin of 10%.
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Other notable small cap movers included Meeka Metals (+9.6%), Tamboran Resources (+8.82%), and Brightstar Resources (+7.32%). On the flip side, Empire Energy (ASX: EEG) tumbled nearly 22% to $0.16, leading the laggards.
Xero Maintains Analyst Confidence Despite Cost Caution
Tech heavyweight Xero (ASX: XRO) remained in the spotlight after releasing softer-than-expected earnings alongside a cautious outlook for FY26 operational expenses. Nonetheless, analysts from major investment banks reiterated their bullish stance. Goldman Sachs raised its price target to $205, citing strong international momentum and upcoming U.S. investments. UBS went even further, lifting its target to $215 while highlighting Xero’s pricing power and potential to grow average revenue per user through services like Syft and payments.
Xero’s market capitalisation stood at $27.9 billion, underlining investor confidence in its long-term growth story despite near-term cost headwinds.
Dusk Updates FY25 Guidance: Solid Growth Expected
Retailer Dusk Group (ASX: DSK) offered investors a cautiously optimistic update on its FY25 outlook. The company expects total sales to reach between $137 million and $139 million—an 8.9% increase from FY24. However, gross profit margins are forecast to decline slightly by 50 to 100 basis points. The company also reported a healthy cash position of $18–20 million and net inventory worth $15–17 million, impressive figures considering its $57.8 million market cap.
Underlying EBIT is projected at $7–8 million, representing a 21% year-on-year rise, indicating operational improvements even in a challenging retail environment.
Webjet Rejects Takeover Bid from BGH
Online travel agency Webjet (ASX: WJL) firmly rejected a takeover offer from private equity firm BGH Capital. The bid, priced at $0.80 per share, represented a 10% discount to Webjet’s last traded price and was swiftly dismissed by the Board as undervaluing the company. Analysts backed the decision, with RBC Capital Markets stating the offer valued Webjet’s operations at just 10.8x FY25 net profit, far below the multiples of listed peers like Flight Centre and Corporate Travel.
Analysts estimated Webjet’s fair value between $1.05 and $1.30 per share, with shareholders unlikely to entertain offers below $1.26.
Insider Activity at Shaver Shop
Shaver Shop (ASX: SSG) Chairman Brodie Arnold sold 300,000 shares on the open market, reducing his holdings by 30%. This marked the first insider sale since November 2024. Despite the transaction, Arnold retains 700,000 shares in the business. Shaver Shop shares have risen 19.5% over the past year, reflecting strong retail performance amid stable consumer demand.
Market Outlook
With the ASX 200 now within 3% of its 14 February record high, investor sentiment remains broadly positive. The current momentum, supported by strong earnings updates and sustained analyst optimism in key sectors, could potentially see the index testing new highs in the near term—barring any macroeconomic surprises.
