The Australian sharemarket started the week on a strong note, buoyed by gains in the banking and healthcare sectors, while defence stock DroneShield soared to fresh record highs.
The S&P/ASX 200 Index advanced 0.9%, or 75.1 points, to close at 8862.8 on Monday, with nine of the 11 sectors finishing in positive territory.
Financials led the advance, with Commonwealth Bank up 2.2%, Westpac adding 2%, ANZ up 1.7% and National Australia Bank rising 1.5%.
Investors turned their focus to the Reserve Bank of Australia’s policy meeting on Tuesday, though the ASX RBA Rate Tracker was indicating a 4% chance of a rate cut to 3.35% as of 26th September, and less than even odds of a move in November.
Healthcare stocks staged a rebound after sharp declines late last week, as U.S. President Donald Trump announced fresh tariffs on the sector.
CSL recovered 2.5%, while Telix Pharmaceuticals rose 1.4%, and ResMed added 1.2%.
Defence technology firm DroneShield delivered one of the day’s most eye-catching moves, surging 18% to a record close of $4.40 as NATO increased air-defence assets in Europe following drone incursions in Denmark.
Gold miners extended their rally as bullion crossed the US$3,800 an ounce mark for the first time, supported by expectations of US Federal Reserve rate cuts.
Northern Star gained 3.1%, Evolution Mining rose 4.4% and Newmont climbed 4%.
By contrast, the big miners underperformed as iron ore prices softened.
Rio Tinto shed 1.6%, BHP slipped 0.7%, and Fortescue Metals dipped 2.1%.
In corporate news, Novonix surged more than 15% after announcing its first mass production of synthetic graphite for a major U.S. client and flagging further deliveries.
Synlait Milk jumped 10.4% after agreeing to sell its North Island assets to healthcare group Abbott for NZ$307 million (A$271 million).
On the bond markets, yields eased, with the 10-year falling 1% to 4.337% and the 2-year down 0.9% to 3.494%.
