ASX 200 Gain Became Narrower [3:54 pm]
The S&P/ASX 200 trimmed its earlier gains, rising just 7.20 points to 7,932.40 by 3:54 pm AEDT. The market struggled to maintain its rally as selling pressure in resource stocks weighed on broader gains.
Tech Stocks Lead, But Market Faces Resistance
Despite the overall slowdown, technology stocks remained strong, with:
- Light & Wonder Inc. (LNW) up 58% to $147.42.
- Megaport Limited (MP1) up 29% to $10.215.
These stocks led the charge, but weakness in resource-heavy sectors held back the index.
Sector Performance: Real Estate and Tech Shine
Out of 11 sectors, eight finished higher, while three struggled:
Top-performing sectors:
- Real Estate: +1.61%
- Information Technology: +0.87%
- Health Care: +0.76%
- Consumer Discretionary: +0.75%
- Financials: +0.66%
Investors favoured tech and real estate stocks, benefiting from positive sentiment around interest rates and economic stability.
Sectors under pressure:
- Materials: -1.74%
- Energy: -1.50%
- Consumer Staples: -0.91%
Commodities and energy stocks weighed on the index, reflecting weaker resource prices and investor caution.
ASX 200 Performance: Short-Term Pressure Continues
- The index is now down 0.83% over the last five days.
- It has dropped 56% over the last 52 weeks.
Despite crossing its 20-day moving average earlier today, the market’s struggle to sustain gains suggests investor uncertainty.
Outlook: What’s Next for ASX?
Tech and real estate stocks could continue driving gains, but pressure from materials and energy could limit upside potential. Traders will closely watch global commodity trends and economic data for further market direction.
ASX Gains as Light & Wonder, Megaport Lead the Rally [2:52 PM AEDT]
The Australian stock market edged higher today, with the S&P/ASX 200 rising 20.60 points or 0.26% to 7,945.80 by 2:52 pm AEDT. The index crossed above its 20-day moving average, a positive sign for investors.
Top Performers: Light & Wonder, Megaport Surge
Two companies stole the spotlight today:
- Light & Wonder Inc. (LNW) surged 5.87% to $147.745.
- Megaport Limited (MP1) climbed 4.34% to $10.215.
Other strong gainers included:
- Goodman Group (GMG): Up 3.77% to $30.290.
- Life360 Inc. (360): Gained 3.58% to $20.830.
- Healius Limited (HLS): Rose 3.52% to $1.397.
Investors cheered positive movements in the technology and real estate sectors, pushing these stocks higher.
Struggling Stocks: Liontown, Treasury Wine Estates Dip
Not all stocks shared the positive momentum. The worst performers included:
- Liontown Resources (LTR): Dropped 5.13% to $0.555.
- Treasury Wine Estates (TWE): Fell 4.37% to $9.200.
- Neuren Pharmaceuticals (NEU): Slipped 4.05% to $10.890.
- Paladin Energy Ltd (PDN): Lost 4.04% to $4.625.
- Mesoblast Limited (MSB): Declined 3.88% to $1.860.
Resource stocks saw declines, with Liontown Resources facing another setback after recent volatility in the lithium sector.
High Trading Volumes: IPH and Light & Wonder Attract Attention
Some stocks saw a massive surge in trading activity. The biggest volume outliers were:
- IPH Limited (IPH): Volume surged 488% to 3.18M.
- Light & Wonder Inc. (LNW): Trading volume jumped 337% to 283.75K.
- IDP Education Limited (IEL): Volume spiked 278% to 2.54M.
- James Hardie Industries (JHX): Increased 256% to 2.48M.
- De Grey Mining Limited (DEG): Volume up 230% to 20.34M.
Investors were closely watching these stocks, possibly signalling increased institutional interest or major developments.
Zip Co Shares Drop After Court Ruling
Zip Co (Z1P) shares fell over 6% today following an unfavourable trademark infringement ruling.
- The Federal Court ruled in favour of Firstmac Limited on March 19, finding that Zip Co had infringed on Firstmac’s ‘Zip’ trademark.
- The dispute began in 2019 when Firstmac sued Zip over the use of the ‘Zip’ name.
- Despite the ruling, Zip Co assured investors that its Australian operations remain unaffected.
A spokesperson for Zip confirmed:
“We intend to lodge an application for special leave to appeal the court decision.”
Legal battles can significantly impact stock prices, and investors reacted swiftly to this development.
Market Outlook: Where Next for ASX?
The ASX 200 has lost 0.67% over the past five days and 0.73% over the last year, reflecting recent market uncertainties.
However, today’s crossing above the 20-day moving average suggests a potential recovery. Investors will be watching whether the index can hold these gains or face renewed pressure.
The performance of technology stocks like Light & Wonder and Megaport shows confidence in growth sectors. However, resource stocks remain under pressure, with Liontown’s drop highlighting challenges in the commodity space.
As the trading week progresses, investors will monitor economic data, global market trends, and corporate earnings for further direction.
