Australia 200 afternoon report: 5 June 2025

The Australia 200 trades 8 points lower (-0.09%) at 8533 as of 2:30pm AEST.

Australia 200 eases as profit-taking caps rally ahead of key global events

Following an early 25-point gain, the Australia 200 (ASX 200) reached a high of 8567.3, just 48 points (0.55%) shy of its record high of 8615. However, profit-taking ahead of this week’s key events has pushed the market into negative territory this afternoon.

In focus is United States (US) President Donald Trump’s call with China’s leader Xi Jinping. Both sides have accused each other of breaching the terms of their recently agreed tariff pause. Trump stated earlier this week that Xi was 'extremely hard to deal with.'

These events have somewhat lowered expectations ahead of the call, so a positive outcome could lead to further gains for global equity markets.

Australia 200 stocks

Mining sector

Resource stocks outperformed as traders rotated away from financials:

• Mineral Resources surged 11.2% to $22.50
• Fortescue Metals Group gained 1.3% to $14.45
• BHP Group added 0.5% to $38.12
• Rio Tinto rose 0.3% to $109.96

Lynas Rare Earths jumped 11.1% to $22.43 after China introduced stricter export controls on rare earth elements and magnets. As one of the only rare earth producers outside China, Lynas stands to benefit from potential supply disruptions.

Banking sector

• Commonwealth Bank of Australia (CBA) hit a fresh record of $182.00 in early trade before reversing to close 0.4% lower at $180.36
• Australia and New Zealand Banking Group (ANZ) fell 0.5% to $29.49
• National Australia Bank (NAB) dropped 0.4% to $38.43
• Macquarie eased 0.1% to $217.14
• Westpac was the lone major bank to rise, up 0.1% to $33.14

Technology sector

Australian technology stocks followed Wall Street (Dow Jones) higher after the US Tech 100 posted a third consecutive gain overnight:

• DroneShield rose 3% to $1.62
• Megaport lifted 1.6% to $13.78
• Life360 climbed 1.6% to $33.27
• Zip gained 0.7% to $2.23

Property sector

Yesterday’s soft first quarter (Q1) 2025 gross domestic product (GDP) data has boosted expectations of further interest rate cuts from the Reserve Bank of Australia (RBA) later this year. This backdrop supported gains in the property sector:

• GPT Group advanced 2.5% to $4.90
• Charter Hall rose 1.6% to $19.16
• Goodman Group added 0.7% to $33.45
• REA Group edged up 0.5% to $241.84

The real estate sector is now on track for its seventh weekly gain in the past eight.

Australia 200 technical analysis

The Australia 200 has recovered strongly from its April lows. With the index closing in on its record high of 8615, a retest appears likely.

However, in the absence of a clear macro driver, any rejection at that level could signal a potential double top formation and a short-term pullback.

Australia 200 daily chart

• _{Source: TradingView. The figures stated are as of  May 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.}