Closing Bell: ASX gives up some gains as GDP hides unexpected strength
The ASX 200 retreated from highs of +0.5pc to add just 0.18pc after Aussie GDP numbers turned out to be more resilient than first appeared.
ASX rises +0.5% before sliding back to just +0.18%
Broad strength overall, however, with eight sectors higher
Soft GDP numbers hide robust economic indicators
ASX slows to a flattish finish
The ASX 200 took a sharp dip into negative territory just before today’s GDP data were released, then bounced 0.5% when the Australian economy grew less than expected.
After a moment to chew on the numbers – more on them in a sec – traders realised the economy was chugging along just fine and they absolutely, 100% would not be getting a surprise rate cut this year.
That led to an extended sulking session in the afternoon, returning the bourse to just above neutral with a 15.5-point uptick, adding 0.18%.
Eight of 11 sectors moved higher, led by utilities, energy and real estate, with some extra support from the major banks.
Breadth was pretty flat, with 92 companies climbing and 94 falling.
Predictive Discovery (ASX:PDI) had a standout performance, surging 17.6% by end of day after Perseus Mining (ASX:PRU) topped Robex Resources Inc’s (ASX:RXR) takeover proposal.
There was also some strong movement in uranium stocks, adding fuel to the energy sector rally.
Bannerman (ASX:BMN) jumped 7.71%, Boss Energy (ASX:BOE) 6.65%, Deep Yellow (ASX:DYL) 5.42% and Paladin (ASX:PDN) 5.21%.
Aussie economy stronger than GDP signals
The ASX dipped harshly just before the ABS released its quarterly GDP read, then bounced right back up to +0.5% when it came in under expectations at 0.4% vs 0.7%.
Year-on-year, GDP grew 2.1%, just shy of the 2.2% most analysts predicted.
Traders liked the look of the softer numbers at first – a softer economy lowers the risk of a rate hike after all – but on closer examination, Australia's economic growth is stronger than it first appears.
Aussie investment in the economy from private companies shot up 2.9% this quarter, rising to its highest level in more than four years.
The machinery and equipment-driven cash injection from the private sector accounted for 0.5% of our overall economic growth this quarter.
“The rise in machinery and equipment investment reflects the ongoing expansions of data centres,” ABS head of National Accounts Grace Kim said.
“This is likely due to firms looking to support growth in artificial intelligence and cloud computing capabilities.”
That was countered by a 0.1% fall in net exports – mostly due to rising imports – and a 0.5% decline in inventories.
The ABS says the inventory slide is actually a good sign, mostly engineered by the sell-off of stockpiles in the commodities sector.
As those companies seek to rebuild inventories, they’re likely to fuel further GDP growth in the next quarter.
Against a backdrop of high employment and relatively steady inflation, the picture is a fairly strong one.
The bonds market is now pricing in a 95% chance of an interest rate hike from the RBA by the end of 2026.
Once traders had time to read the tea leaves a bit more closely, the market lost a lot of its momentum.
The average day trader is far more concerned with cheap cash than long-term health in the economy, after all.
ASX Leaders
Today’s best performing stocks (including small caps):
| Code | Name | Last | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| ACS | Accent Resources NL | 0.06 | 362% | 221847 | $6,363,985 |
| PET | Phoslock Env Tec Ltd | 0.024 | 243% | 154257262 | $4,370,734 |
| EPXDA | EPX Limited | 0.25 | 52% | 42660 | $12,384,672 |
| QFE | Quickfee Limited | 0.08 | 36% | 2737517 | $22,430,290 |
| ENX | Enegex Limited | 0.25 | 32% | 342385 | $48,675,109 |
| ATH | Alterity Therap Ltd | 0.01 | 25% | 9571066 | $87,003,331 |
| FMR | FMR Resources Ltd | 0.315 | 24% | 263676 | $12,522,991 |
| AT1 | Atomo Diagnostics | 0.033 | 22% | 8087292 | $21,874,733 |
| IVX | Invion Ltd | 0.096 | 22% | 785082 | $6,766,133 |
| APC | APC Minerals | 0.012 | 20% | 8148217 | $2,929,334 |
| AYT | Austin Metals Ltd | 0.006 | 20% | 500500 | $7,920,957 |
| MRZ | Mont Royal Resources | 0.315 | 19% | 1243970 | $50,017,248 |
| MBK | Metal Bank Ltd | 0.02 | 18% | 546774 | $11,581,205 |
| DAL | Dalaroometalsltd | 0.047 | 18% | 33005 | $12,030,244 |
| RAU | Resouro Strategic | 0.27 | 17% | 32983 | $10,788,124 |
| PDI | Predictive Disc Ltd | 0.7325 | 17% | 33936912 | $1,641,315,629 |
| C1X | Cosmosexploration | 0.09 | 17% | 1141897 | $8,351,928 |
| HCT | Holista CollTech Ltd | 0.09 | 17% | 65805 | $28,323,246 |
| COV | Cleo Diagnostics | 0.73 | 17% | 410443 | $80,312,501 |
| AJX | Alexium Int Group | 0.007 | 17% | 682647 | $9,654,782 |
| C7A | Clara Resources | 0.0035 | 17% | 2850000 | $3,817,328 |
| CHM | Chimeric Therapeutic | 0.0035 | 17% | 8380007 | $10,926,409 |
| EE1 | Earths Energy Ltd | 0.007 | 17% | 4816500 | $3,179,785 |
| MGU | Magnum Mining & Exp | 0.007 | 17% | 8931390 | $16,824,763 |
| MPR | MPR Australia Ltd | 0.007 | 17% | 45415 | $2,062,220 |
In the news…
Phoslock (ASX:PET) has opted to restart production of its phosphorus-binding water treatment Phoslock at its factory in China.
PET paused production back in 2021 when demand in China collapsed, but sales have continued and the company is ready to resume production.
Manufacturing will resume in January 2026, targeting about 3000 tonnes per year, with the option to double that should demand prove high enough.
QuickFee (ASX:QFE) has updated its capital management and dividend policy, opting to distribute a minimum of 1 cent per share per year.
QFE is also offering an interim dividend of 0.5 cents per share for the 2026 financial year, and reaffirmed its FY26 EBITDA guidance of $3.75 million to A$4.25 million.
Enegex (ASX:ENX) has kicked off a 1500m auger program at its Cote D’Ivoire Tougbe gold permit, with another 2000m of drilling at its Gogo gold permit to follow.
The company has also scheduled a round of air core and reverse circulation drilling for January 2026, targeting geochemical soil anomalies with peak values of 4.14g/t gold.
FMR Resources (ASX:FMR) wrapped a downhole geophys probe at the Llahuin Project Joint Venture, investigating ‘Target A’ within the Southern Prophyry prospect.
The results are good – initial data points to a much larger source than originally modelled, deeper than current drilling has tested. FMR has also spun up the drill bit at the nearby Target C, a shallower target with a strong magnetotelluric response.
ASX Laggards
Today’s worst performing stocks (including small caps):
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| CDR | Codrus Minerals Ltd | 0.015 | -25% | 1414766 | $4,134,688 |
| AOK | Australian Oil. | 0.002 | -20% | 200000 | $3,130,572 |
| GLL | Galilee Energy Ltd | 0.008 | -20% | 3132500 | $7,071,929 |
| NTM | Nt Minerals Limited | 0.002 | -20% | 3199 | $3,027,257 |
| OVT | Ovanti Limited | 0.004 | -20% | 287749508 | $27,578,948 |
| CZN | Corazon Ltd | 0.145 | -19% | 1135227 | $9,119,164 |
| WLD | Wellard Limited | 0.013 | -19% | 195562 | $8,500,005 |
| TGH | Terragen | 0.023 | -18% | 681961 | $14,140,481 |
| M2R | Miramar | 0.0025 | -17% | 379027 | $3,584,770 |
| RAN | Range International | 0.0025 | -17% | 456333 | $5,355,341 |
| TEM | Tempest Minerals | 0.005 | -17% | 2869918 | $6,611,258 |
| ZEU | Zeus Resources Ltd | 0.01 | -17% | 3410391 | $8,612,768 |
| KNG | Kingsland Minerals | 0.105 | -16% | 107265 | $11,327,481 |
| 1AD | Adalta Limited | 0.003 | -14% | 1963 | $6,622,686 |
| GES | Genesis Resources | 0.006 | -14% | 2726477 | $5,479,889 |
| PLC | Premier1 Lithium Ltd | 0.006 | -14% | 275967 | $5,630,985 |
| XPN | Xpon Technologies | 0.012 | -14% | 14904997 | $6,864,989 |
| RB6 | Rubixresources | 0.099 | -14% | 122000 | $7,066,750 |
| IMI | Infinitymining | 0.013 | -13% | 2608108 | $7,845,237 |
| ADR | Adherium Ltd | 0.0035 | -13% | 570316 | $9,969,410 |
| ASP | Aspermont Limited | 0.007 | -13% | 700000 | $23,272,512 |
| FHS | Freehill Mining Ltd. | 0.0035 | -13% | 10310096 | $14,070,414 |
| NES | Nelson Resources. | 0.007 | -13% | 12666994 | $17,572,755 |
| PKO | Peako Limited | 0.0035 | -13% | 416992 | $5,950,968 |
| ZMM | Zimi Ltd | 0.007 | -13% | 60225 | $5,917,051 |
In Case You Missed It
LTR Pharma (ASX:LTP) receives HREC approval from Bellberry for its Spontan erectile dysfunction nasal spray Phase II clinical study.
Pursuit Minerals (ASX:PUR) is close to finalising the acquisition of the Sascha Marcelina gold project in Argentina with due diligence completed and all conditions precedent satisfied.
Orange Minerals (ASX:OMX) secures $3.8 million in capital raise to drive exploration across its Australian and Ghanaian projects.
A clinical study using Optiscan Imaging’s (ASX:OIL) InVue and InForm technology in head and neck cancer surgery will kick off in Perth following ethics approval.
White Cliff Minerals (ASX:WCN) has identified several new high-priority drill targets and extensions to the mineralisation present at Danvers.
Control Bionics (ASX:CBL) moves to acquire the fast-rising NeuroBounce performance program from Neuro Elite Athletics.
GreenTech Metals (ASX:GRE) has raised $5.2m, underscoring strong investor appetite for the Munni Munni PGE-copper-nickel project.
Mammoth Minerals (ASX:M79) has raised $7.5m via a placement at 12c per share to accelerate exploration at its Excelsior and Bella gold projects.
Trading halts
Accent Resources (ASX:ACS) – pending an announcement regarding a response to an ASX price query
Antares Metals (ASX:AM5) – cap raise and project acquisition
Arika Resources (ASX:ARI) – cap raise
Askari Metals (ASX:AS2) – cap raise (top-up following entitlement offer)
AusQuest (ASX:AQD) – cap raise
EQ Resources (ASX:EQR) – cap raise
LinQ Minerals (ASX:LNQ) – awaiting drilling result
Melbana Energy (ASX:MAY) – pending announcement on spud date of its Amistad-11 well in Cuba
Minbos Resources (ASX:MNB) – cap raise and financing update
Swoop Holdings (ASX:SWP) – cap raise (entitlement offer)
TZ Limited (ASX:TZL) – cap raise
Vulcan Energy Resources (ASX:VUL) – capital raise/financing for its Lionheart project
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Originally published as Closing Bell: ASX gives up some gains as GDP hides unexpected strength
