Australia 200 afternoon report: 21 March 2025

The Australia 200 trades 38 points (0.48%) higher at 7957 as of 2.00pm (AEDT).

Can Australia 200 maintain its recovery as rate cut expectations grow?

The Australia 200 is set to finish the week with its best daily close in nearly two weeks and to snap a miserable four-week losing streak. This week's rally has been supported by the absence of new tariff headlines and February's labour force data, which reinforced expectations - ours included - of a Reserve Bank of Australia (RBA) interest rate cut in May following the fourth quarter (Q4) inflation figures.

March performance critical for quarterly outlook

With six trading sessions remaining in March, the Australia 200 will need to gain nearly 2.7% to avoid a second consecutive month of losses and, more importantly, its second straight losing quarter.

ACCC findings boost supermarket stocks

The Australia 200's gains today have come courtesy of a rally in the two major supermarket stocks. The rally followed the release of the Australian Competition and Consumer Commission's (ACCC) findings, which concluded that Woolworths and Coles should not be forcibly broken up.

The ACCC did, however, provide recommendations around clearer pricing practices, shrinkflation and improved transparency for suppliers.

• Woolworths surged 5.1% to $29.58
• Coles rallied 3.5% to $19.20
• Metcash added 3.4% to $3.19

Australia 200 stocks

Real estate sector

The interest rate-sensitive Australia 200 Real Estate sector is on track for its first weekly gain since mid-February, supported by rising prospects of an RBA rate cut in May.

• Lend Lease surged 2.3% to $6.26
• Vicinity Centres added 1.88% to $2.17
• Stockland rose 1.8% to $5.05
• Mirvac climbed 1.66% to $2.14

Financial sector

The Australia 200 Financial sector tumbled 14% between mid-February and mid-March. However, dip buyers have started to emerge in the big banks.

• ANZ rose 0.9% to $29.42
• NAB added 0.82% to $33.36
• Westpac climbed 0.82% to $30.86
• CBA edged 0.26% higher to $146.38

Gold sector

Gold has extended its retreat today from the fresh record high of $3057 it hit overnight due to profit-taking at the key trend channel resistance of $3050.

• Gold Road Resources lost 1.22% to $2.43
• Perseus Mining lost 0.63% to $3.17
• De Grey Mining fell 0.5% to $2.13

Uranium sector

The run of bad news for Australia's largest uranium miner Paladin has continued after it reported it has suspended operations at its Langer Mine in Namibia due to heavy rainfall hampering access to the mine.

• Paladin fell 4.54% to $6.52
• Boss Energy surged 7.22% to $2.89
• Bannerman Energy added 4.77% to $2.52
• Deep Yellow rose 4.30% to $1.15

Australia 200 technical analysis

After slicing through several key support levels in early March, the Australia 200 found some support last week in the 7730/40 area.

Provided the Australia 200 remains above the 7730/40 support area, expect the index to continue its short-covering rally towards 8050 in the sessions ahead.

Australia 200 daily chart

• _{Source: TradingView. The figures stated are as of 11 March 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.}