[SYDNEY] The Australian benchmark notched its best August performance in sixteen years on Friday (Aug 29) as the corporate earnings season wrapped up, while losses in financial stocks dragged the shares slightly lower on the day.
The benchmark S&P/ASX 200 index has risen nearly 2.6 per cent this month, the most gains in August since 2009, as markets digested the Reserve Bank of Australia’s rate cut alongside a barrage of corporate results.
Underperforming miners soared more than 11 per cent this month. Investors also favoured relatively stable sectors such as consumer staples, up 2.3 per cent, and financials, up 3 per cent, following stellar earnings from the likes of grocer Coles and lender Westpac.
The two companies added nearly 16 per cent and 15 per cent this month, respectively.
On the day, the benchmark closed 0.1 per cent lower to 8,973.1 points.
Heavyweight financials ended 0.6 per cent lower on the day, with top lender Commonwealth Bank of Australia dropping 1.8 per cent.
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“Investors are concerned about fiscal 2026 margin compression as rates are expected to continue falling,” said Justin Lin, an investment analyst at Global X ETFs.
Earlier this week, the Reserve Bank of Australia joined the US Federal Reserve to tilt towards a dovish stance on their monetary policies. Lower rates would lower borrowing costs, which could potentially impact bottom lines of banks.
Limiting benchmark losses, technology stocks closed 3.1 per cent higher after data centre landlord NEXTDC soared more than 17.4 per cent on annual earnings beat.
Energy stocks rose 1 per cent. Shares of uranium majors Boss and Paladin Energy advanced 7.7 per cent and 7.8 per cent respectively, after Canada’s uranium producer Cameco Corp flagged a production downgrade for fiscal 2025.
Markets believe the downgrade will drive up uranium prices, allowing equities to react favourably to that decision, said Glyn Lawcock, head of mining research at Barrenjoey.
New Zealand’s benchmark S&P/NZX 50 index closed up 0.2 per cent at 12,930.73 points. REUTERS
