The Australian stock market extended its upward momentum on Thursday, with the S&P/ASX200 index gaining 59.20 points or 0.70%. The index was at 8,465.90 as of 3:30 pm AEDT, bolstered by strong performances in healthcare, finance, and utilities sectors. Over the past week, the index has risen 1.72%, now sitting just 0.13% below its 52-week high.
Top Performers on the ASX
Pro Medicus Limited led gains on the ASX200, surging 8.04%. Sigma Healthcare Limited followed closely, rising 6.48%. Energy Resources of Australia was the day’s standout performer, climbing 50% to $0.003. Imricor Medical Systems also jumped 11.22%, while Alliance Aviation Services gained 7.66%.
Sectoral Strength Drives ASX Gains
Ten out of eleven sectors advanced, with healthcare topping the leaderboard, gaining 1.93%. Financials rose 1.06%, while utilities increased 0.92%. Consumer staples, real estate, and information technology also made gains, rising 0.62%, 0.40%, and 0.39% respectively.
IAG Jumps on Strategic Acquisition
Insurance Australia Group (IAG) shares rose 4.1% following its announcement of a significant acquisition. IAG agreed to purchase 90% of RACQ’s insurance underwriting business for $855 million. The deal includes an option to acquire the remaining stake within two years. IAG expects the acquisition to boost earnings from the first year of ownership.
Banking Sector Fuels Market Growth
The financial sector played a pivotal role in the ASX’s rise. Commonwealth Bank gained 0.7%, while Westpac, NAB, and ANZ rose 1.1%, 1%, and 0.5%, respectively. Insurers QBE and Suncorp added 1.8% and 1.5%.
Healthcare Giants Deliver Strong Results
Healthcare stocks were significant contributors to the ASX’s gains. CSL climbed 1.5%, with Pro Medicus and Resmed rising 1.1% and 1%, respectively. Sleep apnoea treatment manufacturer Fisher & Paykel fell 1.4% despite a 43% increase in its first-half net profit to $153 million.
Energy and Mining Stocks Edge Higher
Mining and energy giants also performed well. BHP rose 0.7%, while Fortescue gained 0.4%. Energy stocks saw Woodside Energy and Santos increase 0.6% and 0.2%. Rising iron ore prices supported these gains.
Retail Sector Faces Mixed Results
The consumer discretionary sector remained flat after leading gains on Wednesday. Wesfarmers fell 0.1%, while Harvey Norman dropped 0.9%. Webjet shares plummeted 4.1% after the ACCC accused the company of misleading consumers about flight prices and bookings.
Star Entertainment Reports Losses
Star Entertainment shares slipped 1.4% after its CEO, Steve McCann, revealed a $27 million underlying loss for the first four months of FY2025.
US Markets Struggle Overnight
Wall Street posted its first loss in over a week, led by declines in technology stocks. Nvidia, Microsoft, and Broadcom fell 1.2%, 1.2%, and 3.1%, respectively. Personal computer makers also struggled, with HP dropping 11.4% and Dell sliding 12.2%.
Financial and healthcare companies helped offset some losses in the US market. Berkshire Hathaway rose 0.9%, while Merck & Co. gained 1.5%.
Economic Updates from the US
The US economy grew at an annualised rate of 2.8% in the third quarter, according to the Commerce Department. Strong consumer spending and export surges fuelled this growth.
Inflation in the US accelerated in October, with the personal consumption expenditures index rising to 2.3%, up from 2.1% in September.
Looking Ahead
The Australian market remains resilient, with gains driven by strategic acquisitions, strong sectoral performances, and rising commodity prices. Investors will watch global developments, including US inflation trends and interest rate decisions, for future market cues.
