Index Update: The benchmark S&P/ASX 200 ended Friday on a weaker note, falling 89.30 points or 1.00% to 8,851.00, slipping below its 50-day moving average. The index has declined 3.78% over the past five days and now sits 3.82% below its 52-week high, reflecting recent market pressure.

Despite the broader decline, six of the eleven sectors finished higher during the session. Information technology emerged as the top-performing sector, advancing 4.57% on the day and 3.33% over the past five days, standing out as a key pocket of strength within the market. Telecommunications services (+1.73%), consumer discretionary (+0.65%), health (+0.14%), and utilities (+0.14%) also recorded modest gains. In contrast, materials was the weakest sector, falling by -4.09%.

Macro Update: Household spending in Australia rose 0.3% month-on-monthin January 2026, according to seasonally adjusted figures released by the Australian Bureau of Statistics. This followed a 0.5% fall in December and a 1.0% rise in November. Year over year, household spending increased 4.6% compared with January 2025, with growth recorded in five of the nine spending categories.

Spending on services increased 1.0%, driven by digital streaming services, travel agency and tour services, and higher dental services spending. Goods spending declined 0.3%, reflecting lower purchases of motor vehicles and recreation and culture goods. Essential spending rose 0.8%, while discretionary spending edged up 0.1% during the month.

Top Market Movers: Among the top gainers, SiteMinder Limited (ASX:SDR) rose AUD 0.410 to AUD 3.550, gaining 13.057%. WiseTech Global Limited (ASX:WTC) climbed AUD 5.150 to AUD 52.720, up 10.826%, while DroneShield Limited (ASX:DRO) advanced AUD 0.370 to AUD 4.070, increasing 10.000%. On the downside, Deep Yellow Limited (ASX:DYL) dropped 11.789% to AUD 2.170, Catalyst Metals Limited (ASX:CYL) fell 11.335% to AUD 7.040, and Sandfire Resources Limited (ASX:SFR) declined 9.577% to AUD 17.090.

Commodity Update: The U.S. dollar held broadly steady in early Asian trade on Friday and remained on track for its strongest weekly gain in over a year as rising Middle East tensions lifted demand for safe-haven assets. Gold advanced 1.19% to USD 5,141.55, silver surged 2.74% to USD 84.42, and copper gained 0.58% to USD 13,004.50. Brent crude slipped 1.33% to USD 84.27 as the U.S. granted waivers allowing Indian refiners to continue buying Russian crude to ease supply pressures.

Our Stance: The S&P/ASX 200 closed Friday lower, falling 1.00% to 8,851.00 and slipping below its 50-day moving average, extending its five-day decline to 3.78%. Sector performance remained mixed, with information technology leading gains, while materials weighed heavily on the index. Macro data from the Australian Bureau of Statistics showed household spending rising 0.3% in January, supported by stronger services spending despite weaker goods demand. Meanwhile, commodities moved higher amid safe-haven demand, adding to global market caution. Overall, the market reflects near-term volatility, with selective sector strength emerging despite broader index pressure. 

In its latest session, the S&P/ASX 200 slipped 89.30 points, forming a bearish candlestick on rising volume, signalling increased investor caution and lingering short-term weakness. The index continues to trade below its 21-period Simple Moving Average (SMA) on the daily chart, which remains an important near-term resistance level. Immediate support is seen near 8,760.50, and holding above this level will be crucial to prevent deeper downside pressure. On the weekly timeframe, the index remains above its 50-period SMA, preserving a constructive medium- to long-term outlook. Once the current selling pressure subsides, the broader uptrend could gradually reassert itself, potentially paving the way for a renewed recovery phase in the sessions ahead.