Markets at a glance 27 September

Around the grounds

The Australian share market is poised to end the trading week in the black, eyeing its best week in more than eight years, as shares extend gains boosted by the heavyweight miners.

Breaking down the detail, the mining sub-index has surged nearly 10% in the week and on track to record its best week since April 2016 as commodities get a leg up after China unveiled its largest stimulus package since the pandemic in a bid to lift its economy out of deflation.

Tech stocks are also higher, tracking their overseas peers.

Bucking the broader trend, energy, and financial stocks. The energy sub-index is down around 1.5% in the worst intraday session drop since September 11 as oil prices plunged overnight following reports Saudi Arabia may abandon its $100 price target and could raise output with OPEC in December.

Despite today’s dip, the sub-index is up 0.6% for the week and is on track for its third straight week of gains.

Financials meantime have slid 4.5% in the week to record its worst week since January 2022 after the RBA held rates steady and maintained a hawkish stance, prompting investors to further reduce expectations of a December rate cut.       

In the news

Looking at some of the stocks to watch in today’s trade. Australian listed shares of Star Entertainment Group (ASX: SGR) have plunged 43% to hit a record low, as the stock resumes trading a day after posting a second straight multi-billion-dollar annual loss, dogged by a write-down in the value of its venues.  

Elsewhere, Coles (ASX: COL) and Woolworth’s (ASX: WOW) are back in the news as the ACCC says the two grocery chains were effectively an oligopoly and it was looking into the effects of their grip on supermarket real estate.

In a report released by the regulator yesterday, the ACCC said it had received submissions from market participants concerned the giants were buying land to stop rivals acquiring it. In a statement, Woolworths said it would review the ACCC report in detail and provide submissions in the coming months. A final report is due in February 2025.

And Australian listed shares of Endeavour Group (ASX: EDV) have tumbled as the company says Steve Donohue will step down as CEO and managing director but will continue in the role until a new chief executive is found.

The stock is down around 5.8% so far this year.

Finally, the broker houses have swooped in on Brickworks (ASX: BKW) with analysts at Citi hopeful about the company’s property business, saying lower interest rates could benefit the segment’s outlook. ‘Buy’ rating retained, with the broker cutting its price target to AU$36.60 a share down from $37.50 a piece previously.  

The stock is up 2% YTD, as of last close.

Going global

Rounding it out on the global stage, Chinese stocks are headed for their best week since 2008 after Beijing rolled out a fresh blitz of stimulus measures in a bid to revive the struggling economy. MSCI’s broadest index of Asia-Pacific shares outside Japan are up over 1% and headed for a weekly gain of 6%.

The same can’t be said about Japanese shares however, with Tokyo’s Nikkei 225 reversing course in today’s trade, erasing earlier gains to trade relatively flat.

Finally, a quick check in the currency market, the US dollar continues to drift, poised for a fourth straight week of declines. The euro meantime is steady, a shade below the 14-month high touched on Wednesday, while sterling is hovering near two and a half year peaks as risk appetite gets a boost from those Chinese stimulus measures. The risk sensitive Australian and New Zealand units are also holding near multi-year highs.  

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