ASX tops closing high with strong performance in tech and consumer stocks

Risk aversion after Iran’s missile attack on an Iraqi base was almost completely reversed over the session.

Prominent fund manager Geoff Wilson has warned that investors should be vigilant in the current market, tipping that the bull run was nearing its end.

The easing of tensions between the US and Iran helped to spur a rally in global equities, helping the local market to finish at a record closing high on Thursday.

Risk aversion after Iran’s missile attack on an Iraqi base was almost completely reversed, with strong performance in tech and consumer stocks over the session.

The benchmark S&P/ASX 200 touched as much as 6889.2 through the day, shy of the 6893.7 intra-day record, but lost some steam at the finish to close with a more mild gain of 0.83 per cent, or 57 points, to 6874.2.

Meanwhile, the broader All Ords broke the 7000 mark for the first time, setting a record of 7002.8 before closing higher by 0.88 per cent, or 61 points, at 6991.4.

“You can’t be blamed for feeling a bit of a sense of deja vu today. It’s the fourth time in six months, or so, that the ASX 200 has made a charge higher towards the 6900-mark, only to bow down before the milestone and pullback,” IG markets analyst Kyle Rodda said.

“It would seem the level is quite a strong area of resistance for market participants at present, and a point which represents close to the top-end of “fair value” for Aussie equities right now.

“Once again, valuations look rather stretched up here, with forward earnings looking as rich as they’ve been (again) for this decade.”

Gains were led by the tech sector, which lifted by 2.2 per cent amid renewed risk appetite.

Afterpay gained by 1.6 per cent to $30.57, Xero lifted 1.9 per cent to $82.16, Altium rose by 2.6 per cent to $35.47 and WiseTech Global outperformed with a 4 per cent boost to $24.07.

The major banks were the key drag in afternoon trade, with mixed performance in the majors.

Commonwealth Bank led with a 0.73 per cent rise to $81.49, ANZ gained 0.12 per cent to $24.89 and NAB edged higher by just 0.04 per cent to $24.83.

Westpac was the only bank to finish in the red, losing 0.3 per cent through the session to $24.47.

Elsewhere energy and gold names wound back gains made on Wednesday as both commodities slipped back overnight.

Energy was the only sector to notch a negative read for the session, finishing down 0.9 per cent, led by a 1.5 per cent slip in Woodside to $35.60 even after government approval for its new project in Senegal.

Santos wound back by 0.2 per cent to $8.87, Origin fell by 0.8 per cent to $8.69 and Beach Energy lost 2.2 per cent to $2.63.

Gold names were the worst performers – Northern Star dropped 3.2 per cent to $11.81, St Barbara was trimmed by 3.5 per cent to $2.77, Regis Resources slipped 2.9 per cent to $4.35 and Resolute Mining gave back much of Wednesday’s rally, finishing lower by 3.6 per cent to $1.21.

Major miners offset the drag, BHP adding 1.2 per cent to $40.03 while Rio Tinto lifted by 1.3 per cent to $102.19 and Fortescue gained 1.7 per cent to $10.82.

Burns treatment group PolyNovo got a 8.3 per cent boost to $2.02 after posting a jump in revenues as its treatments are used in both the White Island Volcano recovery and local bushfires.

Heavyweight health stock CSL hit a record of $291.46 during the session, and closed higher by 1.8 per cent to $291.10.

The Aussie dollar edged up slightly after a surprise boost to the trade surplus, but finished the session just 0.07 per cent higher to US68.71c.