The Australian sharemarket notched a new closing high on Thursday despite paring back most of the day’s gains in the final minutes of trade.

The S&P/ASX 200 Index finished up just 4.7 points, or 0.1 per cent, at 8540, resetting its record for a second session. While eight of the 11 sectors were lower, strong gains in materials kept the bourse in the green. The All Ordinaries also rose 0.1 per cent.

The gauge also set a new intraday high in the morning session, buoyed by the blockbuster debut of Chemist Warehouse. Sigma Healthcare jumped as much as 9 per cent as it traded for the first time as a merged business with the pharmacy chain, before moderating gains. The stock closed up 5.4 per cent at $2.91.

Index heavyweight Commonwealth Bank extended its gains as investors continued to pile into Australia’s biggest bank after it reported earnings on Wednesday. The shares rose 0.5 per cent to $166.72, a record.

‘Solid’ earnings

Positive earnings results from ASX Ltd and South32 also lifted the shares. The ASX jumped 5 per cent to $66.35 after reporting a boost to trading volumes, while South32 advanced 4.1 per cent to $3.57 as the miner’s half-year profit surged.

IG analyst Tony Sycamore said hopes for an impending rate cut from the Reserve Bank of Australia was buoying sentiment. “Today’s gains have come on the back of a solid start to earnings season and expectations that the RBA will commence cutting rates at its board meeting next week,” he said.

The big mining giants rallied with BHP, which named National Australia Bank’s former chief executive Ross McEwan as its new chairman, climbing 2.1 per cent to $40.99.

Mineral Resources rallied 7 per cent to $34.07 after confirming the exit of disgraced managing director Chris Ellison, and Pilbara Minerals rose 4.7 per cent to $2.23 after it secured funding to resume operations at its lithium phosphate processing plant.

But several companies dragged on the index. A sell-off in insurer IAG gained momentum in the afternoon session, sinking the stock 12.6 per cent to $7.80 after forecasting lower premium increases. And Treasury Wine Estates dropped 5.7 per cent to $10.51 after the Penfolds owner softened its full-year profit guidance.

Electricity stocks, often considered a bond proxy, were also sold off after a higher-than-expected US inflation print dampened rate expectations in the world’s largest economy. AGL Energy fell 6.6 per cent to $10.96 and APA fell 1.4 per cent to $6.63.

Stocks on the move

Elsewhere on the ASX, Temple & Webster soared 13 per cent to $16.14 after hitting a record earlier in the session. Sales topped market expectations, jumping nearly 24 per cent and boosted by new and returning shoppers.

Former REA Group CEO Greg Ellis is stepping in to run its biggest competitor, Domain, for up to a year while the Nine Entertainment-controlled real estate listing platform continues a search for a permanent replacement. Domain’s shares leapt 7 per cent to $2.92.

Downer EDI slipped 3.6 per cent to $5.35 after group revenue fell 6.5 per cent, and earnings were hit by a slew of one-off costs.

And Pro Medicus slipped 3.2 per cent to $279.08 after its first-half earnings came in below market expectations.