Image Source : Krish Capital Pty Ltd

Index Update: The Australian sharemarket rallied on Thursday, with the S&P/ASX 200 climbing 100.20 points, or 1.13%, to close at 8,945.90, marking a new 20-day high. The index has advanced 1.97% over the past five days and remains just 1.20% below its 52-week high. Sector gains were broad-based, with eight of 11 sectors finishing higher. Health Care led the pack, rising 2.03% on the day and 2.07% over the past week, followed by Materials (+1.83%) and A-REITs (+1.24%). Utilities (-0.18%) and Consumer Staples (-0.05%) were among th few sectors to post declines.

Macro Update: Household spending in Australia edged up 0.1% in August, marking the fourth consecutive monthly rise, the Australian Bureau of Statistics (ABS) reported. Annual spending grew 5.0% compared with last year. Increases were led by Transport and miscellaneous goods and services, while Recreation and culture, along with Alcoholic beverages and tobacco, saw the largest declines. Services spending rose 0.5%, supported by higher airline and accommodation bookings.

Top Market Movers: The Australian sharemarket saw notable moves on Thursday, with Liontown Resources Limited (ASX:LTR) leading gains, rising AUD 0.085 to AUD 0.965, up 9.66%. Westgold Resources Limited (ASX:WGX) gained 8.27% to AUD 5.37, while Perpetual Limited (ASX:PPT) added 6.90% to AUD 19.99. On the downside, DroneShield Limited (ASX:DRO) fell 9.76% to AUD 5.18, Superloop Limited (ASX:SLC) dropped 8.17% to AUD 3.26, and News Corporation (ASX:NWS) declined 5.61% to AUD 49.50, reflecting mixed investor sentiment across sectors.

Commodity Update: Asian currencies and the dollar were steady Thursday as markets weighed the risk of a U.S. government shutdown, firmer South Korean inflation, and Australia’s weak trade data. Gold slipped 0.25% to USD 3,887.70, silver fell 0.85% to USD 47.27, while copper gained 0.34% to USD 10,416.55. Brent crude rose 0.57% to USD 65.72 after three sessions of declines, supported by prospects of tighter sanctions on Russian oil despite oversupply concerns.

Our Stance: The ASX 200’s climb to a 20-day high reflects a market responding positively to steady domestic activity and selective sector momentum, particularly in Health Care and Materials. While household spending showed only modest growth in August, the fourth consecutive rise signals continued underlying consumer resilience, supporting equities sentiment. Commodity movements remain cautious amid global uncertainties, including U.S. fiscal risks and geopolitical factors. Overall, the market appears to be consolidating near key resistance levels, balancing domestic optimism with international headwinds.

In its latest session, the S&P/ASX 200 Index gained 100.20 points to close at 8,945.90, supported by a bullish candlestick formation and strong trading volumes clear signs of sustained investor confidence. On the daily chart, the index remains above its 21-period Simple Moving Average (SMA), which continues to act as dynamic support and underpins the prevailing short-term bullish outlook. A key support zone lies near 8,870.60, and holding above this level will be critical to preserving the current uptrend. From a broader perspective, the index’s sustained position above the 50-period SMA on the weekly chart highlights a resilient long-term bullish foundation, reinforcing strength across multiple timeframes.

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