ASX Rises 0.7% as Retailers Advance; Sigma Healthcare Slumps on Boots Acquisition Talks
The Australian sharemarket gained 64 points (0.7%) to 8668.20 on Wednesday, driven by strength in consumer and retail stocks amid Middle East tensions and a US-Iran military escalation. Sigma Healthcare shares fell 4.3% after confirming preliminary discussions to acquire UK chemist chain Boots for approximately £7.5 billion ($14.3 billion). The market movement reflects investor flight to defensive consumer staples and discretionary retailers despite geopolitical uncertainty and weakness in technology stocks.
The ASX 200 closed higher on Wednesday despite a volatile global environment, with seven of 11 industry sectors in positive territory. Consumer-related stocks led gains, including supermarket chains Woolworths (up 1.3%) and Coles (up 2.1%), discretionary retailers like Harvey Norman (up 2.1%) and JB Hi-Fi (up 1.8%), and shopping centre property trusts. The Australian dollar traded at US70.26¢. Geopolitical tensions escalated after US forces conducted strikes against Iran described as self-defence operations following the downing of an American helicopter, with Iran's Foreign Minister warning of retaliation. Oil prices rose modestly, with Brent crude climbing 1.3% to near US$93 per barrel, though local energy stocks were mixed. Technology stocks declined, reflecting overnight weakness on Wall Street where the S&P 500 fell 0.3% amid another sell-off in artificial intelligence-related shares. Gold prices softened 2.2%, weighing on mining stocks, while Sigma Healthcare's 4.3% share price decline followed confirmation of preliminary acquisition talks for Boots.
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- Sydney Morning HeraldCenter
ASX trades higher as retailers advance; Sigma slumps on Boots talks
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