Evening Wrap: ASX 200 crosses 8,700 for the first time, BHP soars, Healthcare stocks play catch up

The S&P/ASX 200 closed 118.2 points higher, up 1.37%.

In a nutshell:

• The ASX 200 crossed 8,700 for the first time on record, while the All Ords hot 9,000

• All sectors finished higher, with notable gains from Healthcare and Materials

• BHP soared on a strong iron ore and copper output for FY25

Let's dive in.

ASX 200 Session Chart

ASX 200 closed up 118.2 points (Source: Market Index)

Markets

• Record-breaking session: The ASX 200 achieved its third record close this week, gaining 118.2 points (1.4%) to 8,757.20, with the index hitting an intraday high of 8,776.40 earlier in the session. Weekly gains reached 2.1% - the strongest since May

• Broad-based rally: All 11 sectors finished in positive territory, with a mix of defensives, cyclicals and growth stocks leading the market.

• Strong breadth: Alongside a clean sweep of sectors higher, 167 S&P/ASX 200 constituents (84%) finished flat or higher.

• Materials sector surge: BHP rallied 3.0% to $40.29 after delivering record production in FY25 across key commodities, including 8% copper production growth to 2.01 million tonnes and iron ore output reaching 263 million tonnes. Though the gains might've been more had it not reported blowout capex for its Jansen potash project.

• Healthcare return: The ASX 200 Healthcare Index hit a five-month high after CSL gained 3.6% to $257.38 for a weekly gain of 7%, its best since December 2021, after UBS reaffirmed its buy rating with a $310 price target. Mesoblast soared 34.7% to $2.41 following strong early sales of its FDA-approved therapy Ryoncil.

• Banking resilience: The Big Four banks also supported the index, all up around 1-2%. CBA underperformed, up 0.9%.

• Market milestones: The All Ordinaries cracked 9,000 points for the first time in its history, reaching 9,019.8 points, while the ASX 200's year-to-date gains now sit at a healthy 6.5%.

Economy

• Japan's inflation slightly eased to 3.3% in June, down from a two-year high of 3.7% in May. However, core inflation climbed to 3.4%, the fastest pace since January and above 3.3% estimates.

• BHP CEO Mike Henry noted that global commodity demand has remained resilient in 2025, largely reflecting China's ability to grow exports despite declining US trade and robust domestic demand despite property sector challenges.

Interesting Movers

Trading higher

• +34.08% Mesoblast (MSB) – Quarterly

• +25.86% Syrah Resources (SYR) – US graphite tariff

• +15.96% Novonix (NVX) – US graphite tariff

• +11.78% Clarity Pharmaceuticals (CU6) – No major news

• +9.52% Liontown Resources (LTR) – Chinese authorities ordered Zangge Mining to suspend operations at its lithium projec

• +9.43% Elsight (ELS) – No major news

• +8.41% Pilbara Minerals (PLS) – Chinese authorities ordered Zangge Mining to suspend operations at its lithium projec

Trading lower

• -6.14% Titomic (TTT) – TBC Add News

• -5.81% Yancoal Australia (YAL) – Quarterly

• -5.30% 29METALS (29M) – Quarterly (Thu)

• -4.32% Electro Optic Systems Holdings (EOS) – Defense sector pullback

• -4.08% Select Harvests (SHV) – Crop update

Broker Notes

29Metals (29M)

• Retained at Neutral at Barrenjoey; Price Target: $0.30

• Retained at Sell at Canaccord Genuity; Price Target: $0.16

• Retained at Sell at Citi; Price Target: $0.16 from $0.15

• Retained at Outperform at Macquarie; Price Target: $0.40 from $0.30

Alcoa Corporation (AAI)

• Retained at Neutral at UBS; Price Target: $50.00

Amplitude Energy (AEL)

• Retained at Buy at Canaccord Genuity; Price Target: $0.34

Atlas Arteria (ALX)

• Retained at Equal weight at Morgan Stanley; Price Target: $5.26 from $5.28

AVA Risk Group (AVA)

• Retained at Buy at Canaccord Genuity; Price Target: $0.18 from $0.22

Aurizon Holdings (AZJ)

• Retained at Underweight at Morgan Stanley; Price Target: $3.03

BETR Entertainment (BBT)

• Retained at Buy at Ord Minnett; Price Target: $0.46

BHP Group (BHP)

• Retained at Buy at Citi; Price Target: $43.00

Boab Metals (BML)

• Retained at Buy at Shaw and Partners; Price Target: $0.40

CAR Group (CAR)

• Retained at Buy at UBS; Price Target: $46.00 from $45.00

Canyon Resources (CAY)

• Retained at Speculative buy at Canaccord Genuity; Price Target: $0.35

Conrad Asia Energy (CRD)

• Retained at Speculative buy at Canaccord Genuity; Price Target: $1.60 from $1.80

CSL (CSL)

• Retained at Buy at UBS; Price Target: $310.00

Catalyst Metals (CYL)

• Retained at Buy at Morgans; Price Target: $6.93 from $7.15

Domino's Pizza Enterprises (DMP)

• Retained at Buy at UBS; Price Target: $22.00

DroneShield (DRO)

• Downgraded to Hold from Buy at Bell Potter; Price Target: $3.80 from $2.60

Endeavour Group (EDV)

• Downgraded to Equal weight from Overweight at Morgan Stanley; Price Target: $4.60 from $5.10

• Retained at Hold at Ord Minnett; Price Target: $3.80 from $4.20

FireFly Metals (FFM)

• Retained at Buy at Shaw and Partners; Price Target: $1.65 from $1.90

Genesis Minerals (GMD)

• Retained at Neutral at Barrenjoey; Price Target: $4.20 from $4.30

• Retained at Buy at Canaccord Genuity; Price Target: $5.70

• Retained at Neutral at Citi; Price Target: $4.40 from $4.00

• Retained at Outperform at Macquarie; Price Target: $5.50 from $5.70

• Retained at Hold at Ord Minnett; Price Target: $4.35 from $4.15

• Retained at Hold at Shaw and Partners; Price Target: $4.10 from $4.00

• Retained at Buy at UBS; Price Target: $5.20 from $5.50

Gold Road Resources (GOR)

• Retained at Underweight at Barrenjoey; Price Target: $3.25 from $3.40

• Retained at Hold at Canaccord Genuity; Price Target: $3.40 from $3.50

• Retained at Speculative buy at Euroz Hartleys; Price Target: $3.30 from $3.39

• Downgraded to Speculative buy from Buy at Jefferies; Price Target: $3.30 from $3.40

• Retained at Neutral at Macquarie; Price Target: $3.30

• Retained at Sector perform at RBC Capital Markets; Price Target: $3.30 from $3.40

• Downgraded to Neutral from Buy at UBS; Price Target: $3.25 from $3.55

Guzman Y Gomez (GYG)

• Retained at Neutral at UBS; Price Target: $31.00 from $34.00

Hillgrove Resources (HGO)

• Retained at Speculative buy at Canaccord Genuity; Price Target: $0.08 from $0.09

HUB24 (HUB)

• Retained at Overweight at Morgan Stanley; Price Target: $115.00 from $80.00

ikeGPS Group (IKE)

• Retained at Buy at Shaw and Partners; Price Target: $1.30 from $1.20

Ingenia Communities Group (INA)

• Downgraded to Hold from Buy at Ord Minnett; Price Target: $5.40 from $6.11

Lovisa Holdings (LOV)

• Retained at Neutral at UBS; Price Target: $30.00

Metals X (MLX)

• Retained at Buy at Ord Minnett; Price Target: $0.80

Medibank Private (MPL)

• Downgraded to Neutral from Overweight at JPMorgan; Price Target: $5.10 from $4.80

Mesoblast (MSB)

• Upgraded to Buy from Hold at Jefferies; Price Target: $2.50 from $2.40

Prospect Resources (PSC)

• Retained at Speculative buy at Canaccord Genuity; Price Target: $0.45

Qube Holdings (QUB)

• Retained at Equal weight at Morgan Stanley; Price Target: $4.20

REA Group (REA)

• Retained at Buy at Citi; Price Target: $275.00

Regal Partners (RPL)

• Retained at Buy at Bell Potter; Price Target: $3.55 from $3.35

Select Harvests (SHV)

• Retained at Buy at Bell Potter; Price Target: $5.30 from $6.05

• Retained at Buy at Ord Minnett; Price Target: $5.65 from $6.05

• Retained at Buy at UBS; Price Target: $5.30

Sigma Healthcare (SIG)

• Upgraded to Hold from Underperform at Jefferies; Price Target: $2.50 from $2.55

Santana Minerals (SMI)

• Retained at Buy at Shaw and Partners; Price Target: $1.36

Santos (STO)

• Retained at Outperform at Macquarie; Price Target: $8.60 from $8.65

• Retained at Equal weight at Morgan Stanley; Price Target: $8.88

• Downgraded to Sector perform from Outperform at RBC Capital Markets; Price Target: $7.50

• Retained at Buy at UBS; Price Target: $7.90

Transurban Group (TCL)

• Retained at Equal weight at Morgan Stanley; Price Target: $13.66

Universal Store Holdings (UNI)

• Retained at Buy at UBS; Price Target: $10.30

Scans