Australia 200 afternoon report: 17 June 2025

The Australia 200 trades 11 points (-0.14%) lower at 8536 as of 2.05pm AEST.

Barring a late burst of activity this afternoon, the Australia (ASX) 200 is set to spend the first two days of this week confined within a 45-point (0.52%) range. This is akin to a rabbit caught in the spotlight cast from the Middle East

Geopolitical caution overrides Wall Street cues

Despite a +1% gain in United States (US) equity futures yesterday and today’s reversal, the Australia 200 has remained unresponsive, failing to track either direction. The retreat in US equity futures comes after reports that President Trump will return early from the Group of Seven (G7) meeting in Canada due to the ongoing Middle East crisis and his call for the evacuation of Tehran.

Whether the Australia 200's paralysis will prove to be inspired or insipid remains to be seen.

There is speculation that the US is preparing to join the Israel-Iran conflict with bunker buster bombs. This could potentially determine whether Iran’s Fordow nuclear enrichment facility, buried deep in the Qom province mountains, will survive the current conflict.

The risks of such a move are high. They include civilian casualties, reactions from regional proxies, the release of radioactive material, and possible increased backing for Iran and its proxies from Russia or China. Despite these risks, the potential rewards of lasting peace in the Middle East may be motivating the US.

Australia 200 stocks

Energy sector

Crude oil futures are trading 0.47% higher at $72.09, underpinning a seventh consecutive session of gains for the energy sector.

• Viva Energy rose 2.97% to $2.07
• Beach Energy added 0.75% to $1.33
• Santos gained 0.45% to $7.75

Uranium stocks

Uranium stocks surged after Sprott Physical Uranium Trust doubled its fundraising to US$200 million for spot market purchases.

• Bannerman Energy soared 13.51% to $3.36
• Deep Yellow jumped 6.85% to $1.67
• Paladin Energy added 4.67% to $7.72
• Boss Energy rose 4.50% to $4.52

Technology sector

Making the most of the US Tech (Nasdaq) 100's 1.4% gain overnight, local tech stocks have been in demand.

• DroneShield lifted 6.50% to $1.89
• Zip rose 4.17% to $2.75
• Block climbed 3.54% to $99.24
• Life360 added 1.40% to $32.03

Financial sector

Banks extended losses for a fifth session, with profit-taking evident since last week's record high of 9470.

• ANZ fell 0.74% to $29.38
• Westpac dropped 0.63% to $32.98
• NAB declined 0.39% to $38.79
• Commonwealth Bank of Australia eased 0.30% to $178.88

Australia 200 technical analysis

Last week, after the Australia 200 set a new record high, we noted that the relative strength index (RSI) was at its most overbought level since December 2023 and this was followed by a 4% pullback. We also highlighted that Wednesday’s push to new highs resulted in a 'loss of momentum' type daily candle. This was followed by some downside continuation in Thursday's and Friday’s sessions.

A sustained break of support at 8500 would increase the likelihood that the Australia 200 established a medium-term top last week at the 8639 high and that a deeper pullback is underway, with the 200-day moving average at 8200 viewed as the initial target. Until then, allow the index to extend its gains towards 8800.

Australia 200 daily chart

• _{Source: TradingView. The figures stated are as of 17 June 2025. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.}