The ASX 200 closed 61.3 points higher, up 0.70%, driven by a surge in uranium stocks and a broad-based rally in resources and banks. The market's resilience comes despite softer-than-expected GDP data, which had initially raised concerns about a potential RBA rate hike. However, the GDP data's impact was offset by the positive sector rotation, with resources and banks advancing while technology stocks took a breather after their recent gains.
Uranium stocks were the standout performers, with Urenco USA's announcement of a multi-billion dollar capacity expansion at its New Mexico enrichment plant sending the Global X Uranium ETF soaring 5.7%. Local producers like Paladin Energy, NexGen Energy, and Bannerman Energy also surged, reflecting the broader market's enthusiasm for the sector.
The materials sector was bolstered by a multi-week advance in copper prices, with the London Metals Exchange price approaching US$14,000 per tonne. BHP and Rio Tinto both closed at fresh all-time highs, while base metals specialists like Alcoa, BlueScope Steel, and Sims also advanced.
Consumer staples, including Woolworths and Coles, were notable winners as softer GDP data reduced rate expectations, improving the relative attractiveness of dividend-paying blue chips. Financials also recovered, with all four major banks gaining at least 0.6%, led by ANZ.
In contrast, the information technology sector pulled back from its recent high-single-digit gains, with companies like Catapult Sports, Bravura Solutions, and Xero giving back some ground. Communication services and consumer discretionary sectors also faced pressure, with OOH!Media, Lovisa, and Temple & Webster among the top fallers.
Despite the market's overall positive performance, there were some notable losers, including Qoria, Kingsgate Consolidated, and OOH!Media, which were hit by various factors such as wage decisions and competitive pressures.
In terms of future outlook, the market's resilience and sector rotation suggest a continued focus on resources and banks. However, the potential impact of supply constraints and the broader market's reaction to economic data will be crucial in shaping the market's trajectory.
