Index Update: The Australian sharemarket rose on Thursday as investors continued to rotate out of banking stocks and into mining shares. The S&P/ASX 200 closed up 41.10 points, or 0.47%, at 8,861.70, setting a new 20-day high. Over the past five sessions, the index has gained 1.62% and is now trading 2.78% below its 52-week high. Six of the 11 sectors finished higher on the day. Materials led sector gains, rising 1.09% and extending its five-day advance to 3.85%, while strength was also recorded across health care, energy and financials.

Macro Update: Job vacancies in Australia fell 0.2% in the three months to November 2025, driven by a decline in the private sector, according to new ABS data. Total vacancies stood at 326,700, broadly unchanged from February 2025, while vacancies fell 5.2% over the year, with private sector roles down 6.8% and public sector vacancies up 8.9%.

Top Market Movers: The top gainers of Thursday included South32 Limited (ASX:S32), rising 4.55% to AUD 4.14, BlueScope Steel Limited (ASX:BSL), up 4.17% to AUD 31.00, and Tuas Limited (ASX:TUA), which gained 2.81% to AUD 7.31. On the downside, Zip Co Limited (ASX:ZIP) fell 6.10% to AUD 3.08, Life360 Inc. (ASX:360) declined 5.12% to AUD 28.75, and Treasury Wine Estates Limited (ASX:TWE) dropped 4.85% to AUD 5.10.

Commodity Update: The yen held onto overnight gains but remained pinned near 18-month lows, as caution over possible intervention persisted amid Japan’s election outlook and expectations of added fiscal stimulus. In commodities, gold slipped 0.85% to USD 4,596.70, silver fell 3.75% to USD 88.10, and copper eased 1.17% to USD 13,069.00. Brent crude dropped 2.40% to USD 64.94, retreating from multi-month highs after U.S. President Donald Trump eased concerns over potential U.S. military action against Iran.

Our Stance: Australian equities extended gains as sector rotation favoured miners over banks, lifting the ASX 200 to a new 20-day high and keeping the index within reach of its 52-week peak. Strength in materials was supported by selective buying despite softer commodity prices, while macro data showed easing labour market tightness, led by private sector vacancies. In our view, the combination of moderating employment conditions and resilient equity momentum supports a cautiously constructive outlook. However, ongoing volatility in commodities and global geopolitical sensitivities suggest near-term gains may remain uneven, favouring selective exposure to resources and defensives over rate-sensitive growth names.

In the latest session, the S&P/ASX 200 Index advanced 41.00 points to close at 8,861.70, forming a bullish candlestick supported by strong trading volumes, which reflects sustained investor confidence and positive market participation. From a technical standpoint, 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 support zone near 8,800 remains critical for preserving the current bullish structure; a successful hold above this level is likely to encourage consolidation and potentially drive further upside momentum. Any failure to hold this support could invite near-term volatility. On the weekly timeframe, the index remains well above its 50-period SMA, highlighting a strong medium- to long-term technical setup and signaling that the broader trend remains firmly positive despite short-term fluctuations.