Market Wrap: Banking decline pulls ASX 200 down from record intraday high

Declines in the big banks and discretionary stocks pulled the local sharemarket down from fresh highs on Monday, snuffing out hopes for another record run above the 9000-point barrier. The benchmark ASX 200 ended the day up 5 points, or 0.06 per cent, to settle at 8972.4, while the broader All Ordinaries gained 10.7 points, or 0.12 per cent, to close at 9245. At the opening bell, the market rocketed higher to a new intraday record of 9054 points, propelled by fresh rate cuts hopes in the US. But those gains dissipated towards midday and six of 11 industry sectors ended in the red, led by financials with a 1.18 per cent fall. Bourse heavyweight Commonwealth Bank tumbled 1.47 per cent to $170.30 a share, while Westpac slid 1.77 per cent to $38.29, NAB lost 1.79 per cent to $41.71 and ANZ retreated 1.39 per cent to $33.40. The discretionary sector also sold off, losing 0.91 per cent. Kitchen appliance manufacturer Breville declined 1.54 per cent to $34.59, while automotive parts and services company Bapcor lost 3.18 per cent to $3.96. The materials sector advanced 2.72 per cent on the back of a 2 per cent rally in iron ore prices to US$102 per tonne. BHP jumped 2.71 per cent to $43.14, Fortescue gained 2.56 per cent to $20 and Rio Tinto lifted 2.4 per cent to $115.42. Energy stocks also rallied, with Woodside Energy rising 0.9 per cent $26.85 and takeover target Santos adding 0.64 per cent to $7.81. The Adelaide-headquartered company delivered $4bn in revenues for the first half of the financial year and told investors it would extend its exclusive due diligence window for Middle Eastern bidder ADNOC to September 19. The muted gains on the local sharemarket followed an exuberant night on Wall St on Friday as investors cheered some dovish remarks from US Federal Reserve chairman Jerome Powell at the Jackson Hole conference in Wyoming. “There are two broad reasons why the markets responded the way they did to Powell’s address: the things he did say and the things he didn’t say,” capital.com senior financial market analyst Kyle Rodda said. “First, he acknowledged the weakness in the labour market and the shifting balance of risks to the economy. “Second, he didn’t make any explicit ‘higher for longer statement’ or express a complete and categorical focus on muscling inflation lower. “As a result, the markets see a roughly 87 per cent chance of a cut from the Fed in September, which is boosting market sentiment.” The Dow Jones gained 846 points, or 1.89 per cent, to 45,631, while the S and P 500 index jumped 1.52 per cent to 6466.9 points. The tech-heavy Nasdaq advanced 1.88 per cent to 21,496. In corporate news, the drama of earnings season continued with a sweep of companies booking sharp rises or falls as investors digested the latest numbers. Adore Beauty leapt 11.11 per cent to $1 after reporting a 67.8 per cent lift in earnings to $8.1m for FY25. Southern Cross Media, which owns the Triple M radio station and the Listnr app, soared 26.52 per cent to 84c after delivering a 5 per cent jump in revenues to $421.9m. But plumbing and waterworks provider Reece crashed 16.42 per cent to $11.76, making it the benchmark’s largest laggard, after reporting a 24 per cent slump in profits to $317m. The top gainer on the ASX200 was tech stock Megaport, leaping 13.24 per cent to $16.08. The Aussie dollar gained 0.05 per cent to buy US65c at the closing bell.