PM 25 Sep 26: Markets brace for rate hike

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CommSec Market Update 9 min 2 speakers 6 chapters transcribed 11 hours ago
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What is the main topic discussed in this episode?

Laura Besarati 0:02
Алісна продакшн.
Steve Daghlian 0:06
The Aussie market slides for a second day, but how do we do this week?
Laura Besarati 0:10
And the RBA's interest rate decision is going to steal all the attention next week.
Steve Daghlian 0:15
Good afternoon, I'm Steve Daglin.
Laura Besarati 0:16
I'm Laura Bessaragi.
Steve Daghlian 0:18
It's Friday, the 25th of September.

What’s the overall market performance and why did the Aussie index fall for a second day?

Steve Daghlian 0:20
Welcome to the Comsec Market Update.
Laura Besarati 0:22
Well, Stevie, it's been a bit of a rough end to the week as we head into the close. The Aussie market is falling by zero point four percent. So we did have kind of a good start to the week. We saw modest moves higher Monday through Wednesday, but uh we have declined for the past couple of sessions now.
Steve Daghlian 0:41
That's right. And we're down about three quarters of a percent this week. We're on a four week losing streak as well. We've got three trading days left this month. Um, we're going to enter the final quarter of twenty twenty six uh um s very soon, actually later next week. And at the moment we're down four and a half percent in September. So it has been rough going. A lot happening, of course, in markets from a bond market sell off, higher interest rates from many central banks and uh President Trump hosted uh China's President Xi at the White House without too much in the way of meaningful agreements being reached, at least uh today.
Laura Besarati 1:14
Yeah, absolutely. And we're about seven percent away from the record high that we hit in early August. Can you believe it? Things can change very quickly when it comes to the share market. And you did note uh in month to date terms, we're not doing too well, just a few days left of this month. So it does look like it's going to be the second monthly decline of the year, which I guess is sort of good news because we have improved uh for most months over the course of this. year so far, but look the declines that we've seen so far this month have actually taken us into negative territory in year to date terms. So a lower by roughly half of one percent over the course of twenty twenty six so far.
Steve Daghlian 1:53
Yeah, there are just two sectors today that uh are managing to help limit the declines for Friday. We've got uh the defensive consumer staples, which are up about three quarters of a percent, and the financials, which of course includes the big banks, they're up by around a quarter. Uh, but it does follow a few big declines. So the financials fell from Tuesday through to Thursday, and they're still down by more than half a percent over the uh the

Which sectors helped limit Friday’s declines and why did consumer staples and financials outperform?

Steve Daghlian 2:18
course of the week.
Laura Besarati 2:19
Yeah, we have seen oil prices uh shooting higher as well, which you sort of alluded to. But today the energy sector has been uh lower, not reflecting that lift in oil prices. But of course, yesterday we did see energy stocks up in the order of around one percent. But earlier this week uh oil prices fell below one hundred dollars. They're back to roughly a hundred and seven US dollars per barrel at this point.
Steve Daghlian 2:44
Yeah, and during the Asian sessions, in the past few hours, we have seen a little bit of a decline in the oil price, uh, down around one and a half percent. So that probably is weighing on things. A bit of company news around on Friday as well.
Laura Besarati 2:56
Yeah, there has been a little bit. It's been fairly quiet compared to many of the other days we've seen this week. But the top performer today has been Defense Stock Electro Optic Systems. Uh, it's topping the winners list with a gain of roughly six percent, but it is bouncing back from recent lows. Keep in mind it was also the top performer last month on the back of strong demand for its countered drone technology. So over the course of August. It topped the winners' list and it's just seeming to continue on that momentum, and that's actually landed it as one of the best performers this week as well.
Steve Daghlian 3:29
Yes, it's up twenty percent this year, but it rose six hundred and twenty-eight percent in uh in twenty twenty five. Another standout today is Helios, which is up by around five percent. It's agreed to sell its Agilex Biolabs business for about a hundred and sixty million dollars, and it's said this is a strategic move because Agilex operates as a standalone business.

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