Aussie sharemarket closes fractionally off record high in bumper day of trading, led by consumer discretionary stocks

The Australian sharemarket closed fractionally below its highest point as investors continue to trade on an earlier than expected rate cut. The benchmark ASX 200 index gained 46.70 points or 0.55 per cent to finish at 8493.70. While it was fractionally off the all-time record close of 8515.2 it is a new 100-day high for the market. The broader All Ordinaries also closed in the green gaining 45.20 points or 0.52 per cent to 8745.90. The Australian dollar is trading around US62.37c, up slightly. AMP chief economist Shane Oliver said the market was in a bullish mood following Wednesday’s inflation data. “Our market was a relative laggard last year compared to global markets, in particular the US.” “Part of that was we don’t have a large exposure to tech, and a big part of it was that other central banks were cutting rates and we weren’t,” he said. “Now it looks like rate cuts are imminent in Australia at a time when the US Federal Reserve is becoming more cautious, so there is confidence in Australia getting a rate cut and that will ultimately be positive for the economy and local business profits.” It was an overall strong day for the market with all 11 sectors gaining market share. Consumer discretionary was the second biggest gainer behind energy, with investors likely factoring in Aussies will have more money to spend. “A rate cut should favour rate sensitive parts of the market including consumer discretionary and consumer staples. “Consumer staples benefit as well because people spend on higher margin stuff in good times,” Dr Oliver said. The economist said the market will likely benefit from three to four rate cuts throughout the year. “Rate cuts will likely be spread out. But it’s a bit like when you see a cockroach there’s usually a few others around. “It is the same with rate hikes or rate cuts, so once the RBA first cuts rates, they’ll continue to do so throughout the year.” Zip was the worst performing share on the ASX 200 on Thursday as investors hammered the company after missing the market’s expectations. Zip shares fell 25.38 per cent to $2.44. “Zip delivered a mixed 2Q25 result with strong US performance for total transaction volume and active customer growth, which we think will be overshadowed today by softer revenue yields in Australia and New Zealand and cash EBTDA,” RBC Capital analysts noted on Thursday. Wesfarmers continued to grow in a strong week for the retailer, up 0.72 per cent on Thursday to close at $76.90. Other Consumer discretionary also benefited from the markets factoring in rate cuts with Aristocrat Leisure soaring 3.70 per cent to $73.99, while Guzman y Gomez was up 0.71 per cent to $39.69. The major four banks also finished trading in the green. NAB led the way up 1.04 per cent to $39.90 followed by CBA which closed at $160.1 after gaining 0.96 per cent. Westpac grew 0.69 per cent to $33.78 while ANZ lagged the other banks gaining 0.16 per cent to $30.67.