ASX climbs amid broad rally; Fletcher slumps after profit hit

A rally in interest sensitive technology and property stocks pushed the Australian sharemarket higher on Monday as investors gear up for a busy week of central bank policy decisions.

The benchmark S&P/ASX 200 Index added 0.9 per cent, or 68.3 points, to 7989.6 at the closing bell, with all 11 sectors in the green. The All Ordinaries rose 0.9 per cent.

That’s after Wall Street strongly rebounded at the end of last week after inflation data bolstering bets the US Federal Reserve is on track to cut interest rates by September.

On the ASX, the interest rate sensitive technology stocks were the best performing, climbing 1.5 per cent, with WiseTech rising 2.2 per cent to $95.46 and Xero climbing 1.2 per cent to $134.14. Property stocks also climbed as Goodman Group rose 2.1 per cent to $35.23 and Vicinity Centres added 1 per cent to $2.03.

Three of the four major banks recorded gains, with index heavyweight Commonwealth Bank up 1.3 per cent to $134.90. Westpac added 1.4 per cent to $28.99 and National Australia Bank increased 1.3 per cent to $37.90. ANZ was the only major bank to decline, falling 1.2 per cent to $28.82.

Monday’s relatively stable session is expected to give way to more volatility as traders brace for central bank policy decisions from the US, the UK and Japan this week as well as key Australian quarterly inflation data that could cement whether the Reserve Bank has to lift rates next week.

While ANZ economists expect the Fed to keep rates unchanged at 5.25 per cent to 5.50 per cent this week, it’s also forecasting a “dovish shift” in its stance.

Fed “members are likely to admit that recent data is encouraging and a confirmation of that trend in coming months will pave the way for them to begin cutting rates,” ANZ wrote in a note.

“A September rate cut is fully priced, with a total of 65 to 70 basis rate cuts priced in by the end of the year.”

Stocks in focus

In corporate news, Fletcher Building slumped 6 per cent to $2.83 after warning of a $NZ30 million ($26.9 million) hit to financial year 2025 earnings due to operational issues with a third-party provider that transports cements from its manufacturing facility.

Pacific Smiles Group rose 1.9 per cent to $1.88 after it received a revised proposal from Genesis Capital to acquire all of the shares for $1.90 apiece. The revised proposal would provide shareholders with the alternative to obtain all or part consideration in scrip, it said.

Adore Beauty rose 3.2 per cent to $1.88 after its shares dropped earlier when the beauty retailer announced the appointment of ex General Pants chief executive Sacha Laing as CEO. He has also held executive roles at Country Road and David Jones.

And shares of Lark Distilling Co are in a trading halt. The Tasmanian whisky maker has announced a strategic partnership with Seppeltsfield Wines and $22.5 million equity raising. The shares last traded at 86¢ apiece.

Regional Express has also asked for its shares to be paused after reports on the weekend suggested the airline, known as Rex, had called in Deloitte’s restructuring services.