Australian shares managed a modest rebound on Thursday, but the relief was fleeting as the benchmark again slid into a fragile sideways pattern after touching a fresh 20-day low earlier in the session.
The S & P/ASX 200 closed up just 10.30 points, or 0.12 per cent, at 8640.70, masking a week still firmly in the red.
The Index has fallen 2.67 per cent over the past five sessions and remains virtually unchanged year to date, highlighting a market struggling for direction amid shifting policy settings, interest rate uncertainty and sector rotation.
Megaport led the charge, surging 27.71 per cent after announcing $254 million in contract wins with two US tech providers supporting AI applications, while 4DMedical jumped 13.3 per cent.
Codan, Insurance Australia Group and Orica also posted solid gains, helping offset broader weakness across economically sensitive and growth-linked stocks.
On the downside, GrainCorp dropped 13.5 per cent, Lynas Rare Earths fell 9.79 per cent, Xero slid 9.03 per cent and Perenti lost 6.8 per cent.
Coles fell 2.32 per cent after the Federal Court ruled its “Down Down” pricing campaign misled shoppers by presenting fake discounts, adding fresh pressure on the supermarket chain as it faces ongoing scrutiny over its pricing practices.
The banking sector delivered a mixed session as investors continued to digest the federal budget’s tax changes and their potential flow-on effects to housing demand and credit growth.
Commonwealth Bank rose 1.46 per cent after its horror loss of 10.43 per cent yesterday, Westpac edged up 0.25 per cent and ANZ gained 0.90 per cent, while National Australia Bank fell 1.32 per cent.
Miners again provided a stabilising influence. BHP rose 0.88 per cent, Rio Tinto climbed 1.57 per cent and Fortescue advanced 2.09 per cent, supported by continued strength in commodity prices and persistent optimism in parts of the global demand outlook.
The Australian dollar was buying $US1.38.
Market analyst Tony Sycamore from IG said conditions remain unsettled, with the ASX still lagging offshore peers despite pockets of strength in resources.
“We remain sort of stuck in a bit of a chilly old place here for the ASX200. It’s still not happy,” Mr Sycamore said.
He noted that while there had been brief intraday strength, the broader trend remains weak, linking it to a combination of domestic policy shifts and global headwinds.
“When you look at the run over the past three or four weeks it’s been absolutely horrendous,” he said.
“That budget wasn’t particularly friendly for the market overall, but particularly for the banks.”
He added that while bargain buyers had emerged in some blue-chip names after sharp falls, broader sentiment remains subdued.
“We’re still in the doldrums … we are really struggling,” he said.
Attention is also turning to whether China-related developments could provide any stabilising influence, alongside ongoing concerns around interest rates and consumer confidence.
Mr Sycamore warned the banking sector could remain under pressure for some time, citing the impact of property market sensitivity and shifting credit demand.
“There’s no real catalyst for them to spring back,” he said.
He also suggested the market may continue to rely heavily on resources strength to offset financial sector weakness.
“If the heavy weight materials sector can continue … maybe the index can continue to hold its ground,” he said, while noting the ASX is still trading well below recent highs and struggling to build momentum.
