Source: Krish Capital Pty Ltd

Index Update: The Australian share market recovered from a sluggish morning session on Friday to finish the week near record territory, supported by strength in healthcare, information technology, and consumer discretionary stocks, which outweighed slight declines in energy and utilities. The S&P/ASX 200 advanced 41.50 points, or 0.46%, to close at 8,987.40, its highest level in 20 days. For the week, the benchmark added 2.27% and now sits just 0.74% below its 52-week peak. Gains were broad-based, with eight of eleven sectors higher, led by Information Technology, which rose 1.62% on the day and 0.61% across the week.

Macro Update: Gold prices slipped nearly 1% on Thursday, retreating from an earlier record high, after Federal Reserve Bank of Dallas President Lorie Logan urged caution on additional interest rate cuts. Logan noted that while last month’s rate cut provided some insurance against a potential labor market downturn, the U.S. central bank should remain “cautious” about further reductions. According to Reuters, traders are currently pricing in a 99% probability of another rate cut at the Fed’s upcoming meeting. Despite the pullback, gold, a traditional safe-haven asset that benefits from low interest rates, has surged 47% so far this year.

Top Market Movers: Australian shares saw notable moves on Friday, with Eagers Automotive Ltd (ASX: APE) leading gains, up 15.28% to close at AUD 33.80. Digico Infrastructure REIT (ASX: DGT) rose 11.72% to AUD 3.05, while DroneShield Ltd (ASX: DRO) gained 9.65% to AUD 5.68. On the downside, Catalyst Metals Ltd (ASX: CYL) fell 3.59% to AUD 8.06, Boss Energy Ltd (ASX: BOE) declined 2.91% to AUD 2.00, and The A2 Milk Company Ltd (ASX: A2M) slipped 2.21% to AUD 8.86.

Commodity Update: The dollar rebounded overnight despite the U.S. government shutdown halting key economic data, including September’s jobs report. Gold rose 0.15% to USD 3,873.75 following a brief pullback, silver gained 0.82% to USD 46.75, and copper edged up 0.18% to USD 10,510.30. Brent crude added 0.18% to USD 64.29 after four sessions of losses but remained on track for its steepest weekly fall since June amid expectations that OPEC+ may boost output despite oversupply worries.

Our Stance: The Australian share market finished the week near record levels, recovering from a sluggish start as gains in healthcare, technology, and consumer-focused sectors offset weakness in energy and utilities. Global macro signals remain mixed; cautious Fed commentary has tempered expectations for aggressive U.S. rate cuts, pressuring gold after a sharp rally. Despite volatility, commodities remain resilient. Stock-specific strength, particularly in technology and automotive names, reinforces continued investor appetite for growth and innovation-led opportunities.

In its latest session, the S&P/ASX 200 Index advanced 41.50 points to close at 8,987.40, supported by a bullish candlestick pattern and strong trading volumes clear signals of sustained investor confidence. On the daily chart, the index continues to trade above its 21-period Simple Moving Average (SMA), which serves as dynamic support and underpins the prevailing short-term bullish outlook. Key support is identified near 8,900, with a sustained hold above this level essential for preserving the current uptrend. From a broader perspective, the index’s continued position above the 50-period SMA on the weekly chart underscores a resilient long-term bullish structure, reinforcing strength across multiple timeframes.