ASX trades flat, Qantas record high as markets take a breath

The ASX 200 traded sideways on Wednesday, after $48bn was wiped off the sharemarket during Tuesday’s trading.

Aussies shares traded mostly flat on Wednesday, despite a bounce in consumer facing and materials stocks, following the worst trading day in seven weeks on Tuesday.

The benchmark ASX 200 index rose marginally up 9.9 points, or 0.12 per cent, to finish the session at 8,215.60 points.

The broader All Ordinaries rose by 7.30 points, or 0.09 per cent, to close at 8,476.30 points.

The Australian dollar fell 0.01 per cent to 66.67 US cents.

Australia followed flat trading in the US overnight Tuesday.

The S&P500 ended the session lower by 0.05 per cent, closing at 5,851.20, while the Dow Jones slid 6.71 points, or 0.02 per cent. The tech-heavy Nasdaq Composite outperformed with a gain of 0.18 per cent to 18,573.13.

“The S&P500 fell for two days in a row for the first time in six weeks, although the fact is trivial because the move was minuscule and the market is still right around record highs,” Capital.Com senior financial market analyst Kyle Rodda said.

The Australian market largely followed on Wednesday, with consumer discretionary and consumer staples being the best performers.

Markets mostly trade flat, as investors following the worst day in seven weeks. Picture: NewsWire

Overall seven out of 11 sectors finished lower on Wednesday, with consumer staples performing the strongest, up 1.33 per cent.

One of the strongest performer on the ASX200 on Wednesday was Qantas Airways, which had its share price rise by 3.44 per cent to $7.82.

The rise in share price followed an investment note by Jefferies analyst Anthony Moulder who lifted his target price 32 per cent to $10.53 from $7.98.

“With Qantas now widely expected to return to dividend paying status in 1H25, we expect a key platform to the re-rate of Qantas will be clearer to the market inside the next four months,” Mr Moulder wrote.

ASX trades flat as investors wait for US earnings reports.

Qantas shares are trading higher after it was hit with a $150m fine on Tuesday for the illegal sacking of 1700 workers. While this will hit Qantas’ bottom line, it also provides certainty for investors with the court case now settled.

Treasury Wine Estate had a strong day on the market, up 2.16 per cent to $11.85, off the back of rising wine sales in China following the end of the trade tariffs.

Exports of Australian wine reached AU$2.39bn in the 12 months to September 2024, up 34 per cent, according to Wine Australia.

Minerals companies Genesis Minerals Ltd and Stanmore Resources continued their rally following a rise in the underlying gold and coal price.

The gold price has shown strength lately, as both a safe haven for investors with rising national debts around the world, geopolitical risks and central banks appearing to hoard the precious metal.

Originally published as ASX trades flat, Qantas record high as markets take a breath