Hot Stocks: West Coast Silver, LTR Pharma, iTech Minerals

The Australian sharemarket retreated on Friday after reaching record highs the day before, with the S&P/ASX 200 down 30.5 points, or 0.3 per cent, to 8988.60 at midday. Profit-taking weighed on the market, with losses in seven of 11 sectors led by consumer staples after Inghams plunged nearly 20 per cent on weaker-than-expected earnings. Coles and Woolworths also slipped, while technology stocks bucked the trend, Codan jumped 7.3 per cent and both TechnologyOne and Life360 rose more than 2 per cent. Resource stocks also supported the market, with BHP edging higher and James Hardie rebounding strongly after sharp falls earlier in the week.

The fall came a day after the index surged past 9000 points for the first time, closing Thursday at 9019.10. That record-setting rally was fuelled by stronger-than-expected corporate results, optimism over Reserve Bank rate cuts, and hopes the US Federal Reserve will ease policy. Brambles soared more than 13 per cent on a buyback and upgraded guidance, while Transurban, Downer EDI, Super Retail, and Bega Cheese also gained on upbeat results. Financials and CSL added to the advance, though some names like Sonic Healthcare and IPH plunged on disappointing numbers.

The week had been marked by heavy swings: Tuesday saw CSL’s record 16.9 per cent one-day plunge wipe more than $20bn from the index, dragging the ASX 200 to its steepest fall in weeks. Wednesday brought a recovery led by banks as investors sought safer ground, before Monday and Thursday delivered record closes on the back of earnings momentum. By Friday, however, stretched valuations and profit-taking checked the rally, leaving the market slightly off its peak but still at historically elevated levels.

On Wall Street, US stocks have declined so far this week, The S&P 500 is now down 1.2%, while the Nasdaq has fallen 2.4%. The Dow is on track for a 0.4% weekly loss, as of Thursday’s close.