Source: Krish Capital Pty Ltd

Index Update: The Australian sharemarket closed lower on Monday, weighed down by weakness in energy and banking stocks. The S&P/ASX 200 slipped 21.60 points, or 0.24%, to finish at 8,849.60. The benchmark has now fallen 1.38% over the past five sessions and sits 2.26% below its 52-week high.

Sectors finished mixed, with eight of eleven in negative territory. Information Technology led gains, rebounding 1.44% after recent losses, though it remains down 2.36% for the week. Energy was the worst performer as oil majors retreated following news that OPEC+ will increase output from October.

The index also tracked a softer Wall Street lead on Friday, where the S&P 500 slipped 0.3%, the Dow Jones fell 0.5%, while the Nasdaq managed a modest 0.1% gain.

Macro Update: China recorded a trade surplus of USD 102.3 billion in August, up from USD 98.2 billion in July and above market expectations of USD 99.2 billion. Export growth slowed to 4.4% year-on-year, down from 7.2% in the previous month and below the forecast of 5.0%. The wider surplus was mainly driven by imports declining at a faster rate than exports. By region, exports to the US dropped 33%, while shipments to the EU and Africa increased 10% and 26%, respectively.

As per the data shared by the Australian Bureau of Statistics (ABS) on 8 September 2025, in July 2025, seasonally adjusted dwelling approvals in Australia declined 8.2% to 15,769. Private sector dwellings excluding houses dropped 22.3% to 5,943, while private sector house approvals edged up 1.1% to 9,288. The value of total residential building slipped 1.6% to AUD 9.43 billion, and non-residential building approvals fell 14.9% to AUD 6.09 billion.

Top Market Movers: Life360 Inc. (ASX: 360) led the gains on Monday, rising 6.17% to close at AUD 48.51, followed by Boss Energy Ltd (ASX: BOE) up 6.09% at AUD 2.09 and Liontown Resources Ltd (ASX: LTR) climbing 4.30% to AUD 0.97. On the downside, Smartgroup Corporation Ltd (ASX: SIQ) fell 4.40% to AUD 8.70, Super Retail Group Ltd (ASX: SUL) slipped 4.19% to AUD 18.05, and Amotiv Limited (ASX: AOV) dropped 3.88% to AUD 9.42.

Commodity Update: The dollar wavered on Monday after weak U.S. labour data reinforced expectations of a rate cut, while the yen slid on political uncertainty following Prime Minister Shigeru Ishiba’s resignation. Commodities showed mixed trends: gold slipped 0.51% to USD 3,634.45, silver fell 0.49% to USD 41.34, and copper gained 0.23% to USD 9,910.35. Brent crude rose 0.60% to USD 65.90, supported by slower OPEC+ production hikes and geopolitical tensions surrounding the Russia-Ukraine conflict.

Our Stance: The Australian sharemarket remains under pressure on Monday as energy and banking stocks weigh on performance, pushing the S&P/ASX 200 lower to 8,849.60 points. Weakness in commodities, particularly oil, following OPEC+’s decision to raise output from October has further impacted sentiment, though Information Technology has provided some rebound after recent declines. Macro signals are mixed, with China’s widening trade surplus reflecting sharper import contraction, while Australian building approvals highlight ongoing softness in construction activity. Investors are likely to stay cautious in the near term, balancing global economic uncertainties, commodity price shifts, and domestic sectoral headwinds.

The S&P/ASX 200 Index closed 21.60 points lower in its latest session, forming a bearish candlestick pattern accompanied by increased trading volume. This combination signals short-term caution among investors and reflects a prevailing bearish bias. Despite this, the index continues to trade above its 21-period Simple Moving Average (SMA), which now acts as an immediate support. On the daily chart, a key support level is identified around 8,760.50. Sustaining levels above this threshold could help consolidate recent gains and restore confidence in the broader uptrend. On the weekly chart, the index also remains positioned above the 21-period SMA, a constructive sign that points to the potential for sustained momentum over the longer term.