Index Update: The Australian sharemarket extended its upward momentum on Friday, with the S&P/ASX 200 closing 42.20 points higher, or 0.48%, at 8,903.90, marking a new 50-day high. The benchmark recorded its longest winning streak in eight months, supported by gains in banking and technology stocks, which offset profit-taking in the mining sector. Over the past five sessions, the index has advanced 2.13% and now sits 2.32% below its 52-week high. Eight of the 11 sectors finished higher, led by Information Technology, which rose 1.17% despite being down 1.38% over the past five days.

Macro Update: The global economy is showing greater resilience than expected despite ongoing trade tensions and policy uncertainty, according to the World Bank’s Global Economic Prospects report released this week. Global growth is projected to ease to 2.6% in 2026 before rising to 2.7% in 2027, reflecting an upward revision from June forecasts, largely driven by stronger-than-anticipated growth in the United States. However, the World Bank cautioned that the 2020s remain on track to be the weakest decade for global growth since the 1960s, with widening disparities in living standards between advanced and developing economies.

Top Market Movers: Among the top gainers, Catalyst Metals Limited (ASX:CYL) climbed to AUD 9.00, rising AUD 1.15 or 14.65%. DroneShield Limited (ASX:DRO) advanced to AUD 4.40, up AUD 0.32 or 7.84%, while Treasury Wine Estates Limited (ASX:TWE) added AUD 0.39, or 7.65%, to close at AUD 5.49. On the downside, Karoon Energy Ltd (ASX:KAR) fell 3.36% to AUD 1.58, PLS Group Limited (ASX:PLS) slipped 3.11% to AUD 4.68, and IGO Limited (ASX:IGO) declined 3.06% to AUD 8.88.

Commodity Update: The U.S. dollar was set for a third straight weekly gain on Friday, supported by firm U.S. economic data that reduced expectations of near-term Federal Reserve rate cuts. Gold declined 0.59% to USD 4,596.70, silver fell 2.74% to USD 89.81, and copper slipped 1.25% to USD 12,974.00. Brent crude edged down 0.05% to USD 63.73, with both Brent and WTI largely steady as geopolitical risk premiums eased.

Our Stance: The Australian sharemarket ended the week higher, with the S&P/ASX 200 extending its winning streak to reach a new 50-day high, supported by gains in banking and technology stocks. Global cues remained mixed, as the World Bank flagged economic resilience but warned of subdued growth and widening income gaps over the decade. Stock-specific moves drove local market performance, while commodity prices softened alongside a firmer U.S. dollar. The market backdrop reflects cautious optimism rather than broad-based momentum. Sector rotation and selective gains suggest measured risk-taking. Near-term direction is likely to remain sensitive to macro data and global policy signals.

In the latest session, the S&P/ASX 200 Index rose 42.20 points to close at 8,903.90, forming a bullish candlestick on strong trading volumes that signal sustained investor confidence and positive market participation. From a technical perspective, the index continues to trade comfortably above its 21-period Simple Moving Average (SMA) on the daily chart, with this level acting as a key dynamic support and reinforcing the prevailing short-term uptrend. The 8,840 support zone remains critical to maintaining the current bullish structure; a successful hold above this level could support consolidation and pave the way for further upside momentum, while a failure may introduce near-term volatility. On the weekly timeframe, the index remains well above its 50-period SMA, underscoring a strong medium- to long-term technical outlook and confirming that the broader trend remains firmly positive despite short-term fluctuations.