ASX Hits Two-Month High as Tech and Banks Lead, Miners Lag Behind

Key Highlights:

• ASX 200 rises 0.21% to 8,087.7, its highest level in two months
• Tech, healthcare and banks power gains; materials and energy drag
• ERA, Orthocell and St Barbara among top gainers; Liontown and NexGen tumble
   

The Australian share market ticked higher on Tuesday, with the S&P/ASX 200 advancing 17.1 points (+0.21%) to close at 8,087.7, marking its strongest finish in two months. Broader benchmarks followed suit, with the All Ordinaries up 0.20% to 8,304.3, buoyed by strength in technology, healthcare and financial stocks.

Despite the modest headline gain, the day’s tone was bifurcated — seven of eleven sectors rose, while heavyweight miners and energy names pulled back as commodity prices cooled and investors rotated back into growth and defensives.

Tech stocks led the rally, with the All Technology Index climbing 0.66%, driven by strength in software, payment, and medtech names. Tyro Payments (+5.78%), Bravura Solutions (+4.98%), and Imricor Medical (+4.92%) all gained ground as investor appetite returned to the sector after a period of underperformance.

Healthcare also posted solid gains, rising 0.78% on the back of interest in biotech and diagnostics firms. Meanwhile, the big four banks firmed, lifting the ASX 200 Banks Index by 0.69% as falling volatility and a resilient credit environment supported sentiment.

Energy and mining stocks, however, remained under pressure. The ASX 200 Resources Index shed 0.53%, while the Gold Sub-Index dropped 0.85% amid weaker commodity prices. Gold slipped 0.24% to US$3,325.50/oz, while Brent crude dipped slightly by 0.05% to US$64.22/bbl. This weighed on stocks like Paladin Energy (-3.59%), Alkane Resources (-3.55%), and Beach Energy (-3.69%).

Standout performers included:

• Energy Resources of Australia (+33.33%)
• Orthocell (+14.68%)
• St Barbara (+11.11%)
• Cedar Woods (+5.16%)
• Arafura Rare Earths (+5.00%)
   

On the flip side, Liontown Resources (-6.14%), NexGen Energy (-6.11%), and Catalyst Metals (-5.43%) ranked among the steepest fallers as investors rotated out of lithium and uranium plays.

Currency markets were quiet but slightly supportive, with the Aussie dollar firming to US$0.6389, while gaining modestly against the euro, pound and yen.

Volatility also remained subdued. The S&P/ASX 200 VIX Index fell to 12.8, well below the 15 threshold that typically signals uncertainty. This suggests investor confidence remains intact for the near term — a notable backdrop as earnings season ramps up and macro risks ebb.

In corporate action, Bank of Queensland went ex-dividend today with a fully franked 18 cent interim payout, while IPO activity heats up with WAM Income Maximiser (WMX) set to list on Wednesday after raising $510 million.

Globally, the U.S. markets set a strong lead, with the Dow Jones (+0.75%) and S&P 500 (+0.58%) climbing on easing inflation expectations. Asian equities were more mixed, with Shanghai marginally lower while Nikkei and Hang Seng both rose.

Looking ahead, analysts warn that while momentum remains constructive, valuations are starting to look stretched in some sectors. UBS today noted that recent gains may be “vulnerable” to softer economic data or renewed commodity weakness. For now, though, a solid earnings season, low volatility, and strong bank performance continue to provide a buffer against global uncertainties.