ASX hits another record high; CBA share price tops $160

A wave of investor optimism pushed the Australian sharemarket to a record high on Monday, though experts have cautioned that momentum could slow after the Christmas period as investors grow familiar with a second Donald Trump administration.

The S&P/ASX 200 closed 0.3 per cent higher at 8417.6 points on Monday, exceeding the previous record high of last week, buoyed by strength in the healthcare and real estate sectors. The biggest company on the ASX, Commonwealth Bank, hit a fresh intra-day high of $160.27 before closing at $160.14.

The market’s recent strong run has come amid rising commodity prices, expectations of global interest rate cuts and the prospect of corporate tax cuts and lighter regulation in the US.

But despite the bullish sentiment – which some predict could continue through late 2024, and which has also helped to push bitcoin close to $US100,000 – some experts predicted conditions on markets could soften in early 2025 when Trump is sworn in as US president.

Wall Street has steadied after a volatile few weeks.Credit: AP

MPC Markets chief executive Mark Gardner described the market as “quite bulletproof at the moment”, noting that tensions in Europe and the Middle East, natural disasters and spiralling US debt had failed to hold back the rise of recent months.

“I don’t think it’ll stop going up,” Gardner said. “If the threat of nuclear war can’t derail this rally, I can’t see what else will derail it in the short term.”

But Simon Ho, chief executive at the T3 Index financial firm, expects the market to lose momentum at the start of next year when Trump begins his second term as US president.

“We’ll get this shot in the arm, and I think it’ll come down, but it won’t be ridiculously bad,” Ho said. “With the backdrop of what’s happening, I think there’s some downside as to what will happen in the near future.”

Moomoo market strategist Jessica Amir forecast a potential slowing of the market in January, which could be triggered by the introduction of tariffs imposed by Trump, and geopolitical tensions.

“It’s the strongest period for markets, and everything has just snowballed together,” Amir said. “The market moves in ebbs and flows, but after inauguration, maybe some of the market will take a haircut, but we will still see some upward flow.”

On Monday, mining giants BHP (up 0.1 per cent) and Fortescue (up 0.4 per cent) both made gains, while Rio Tinto (down 0.4 per cent) and Northern Star Resources (down 1.6 per cent) both went backwards.

Energy shares finished roughly flat, as tensions in the Russia-Ukraine war continued to escalate. Woodside stock increased by 1.2 per cent, while Whitehaven coal (down 2.5 per cent), Santos (down 0.9 per cent) and Ampol (down 1.4 per cent) all ended in the red.

Most of the big four banks dipped, with ANZ losing 1.3 per cent while Westpac and NAB (both 1.2 per cent) also fell. Commonwealth Bank finished 0.7 per cent in the green, continuing its positive results after a run of record numbers.

Mirvac Group (3.3 per cent) and Scentre Group (2.8 per cent) led a strong day of results for real estate, while Pro Medicus (2.7 per cent) and CSL (1.7 per cent) were among the winners in the healthcare sector.

The consumer discretionary sector advanced, with Kmart and Bunnings owner Wesfarmers (1.9 per cent), Aristocrat Leisure (1 per cent) and JB Hi-Fi (0.4 per cent) recording strong gains. Jewellery company Lovisa was another big winner, with its shares rising 2.4 per cent.

The Australian dollar enjoyed a 0.3 per cent rise, and was valued at US65.20 cents at 4.15pm (AEDT).

Shares in car leasing company SG Fleet Group surged 18.4 per cent after Pacific Equity Partners submitted a formal takeover bid for $3.50 a share.

Air New Zealand shares rose 3.2 per cent, after assuring investors that it would post positive first-half earnings following a difficult few months.

On Wall Street last week, stocks closed higher as the market posted its fifth straight gain and the Dow Jones notched another record high.

The S&P 500 rose 0.3 per cent. The benchmark index’s 1.7 per cent gain for the week erased most of its loss from the previous week.

with AP

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