Evening Wrap: ASX 200 rallies as banks bounce, gold stocks surge and defence stocks hit all-time highs

The S&P/ASX 200 closed 75 points higher, up 0.86%. 

In a nutshell:

• Strong gains from Big Four Banks and defensives like Healthcare and Industrials powered the index higher

• CBA rallied 2.1%, marked its best day since April

• Gold stocks surged as gold prices hit fresh all-time highs during the session

• Defence stocks like Droneshield and Electro Optic Systems rallied to fresh multi-year, if not all-time highs

• Carl is off today as it's a public holiday in Perth. He'll be back tomorrow.

Let's dive in.

ASX 200 Session Chart

ASX 200 higher, closed near best levels (Source: Market Index)

Markets

• A relatively strong session, with solid breadth and shift into defensive/value pockets of the market, as recent runners like Tech and Materials took a breather

• Gold was trading up around 0.2% as the market opened, currently up 1.55% to US$3,817. This drove the All Ords Gold Index up 3.2%, with notable gainers including Pantoro (+9.6%), St Barbara (+8.0%) and Evolution Mining (+4.3%)

• Silver stocks also stage a massive move, though only pre-production companies remain after Adriatic Metals was acquired by Dundee. Notable movers include Silver Mines (+10.8%) and Unico Silver (+9.2%)

• Gold miners single handily propped up the Materials sector (+0.27%), offsetting weakness from iron ore miners (BHP -0.9%, Fortescue -2.3% and Rio -1.7%), coal (Whitehaven -3.3%, Stanmore -3.4%) and uranium (Boss, Paladin and Deep Yellow all down around 2%)

• CBA (+2.1%) lifted the Financials sector, trading above its 20-day moving average for the first time since 12 August

• CSL (+2.4%) closed at $199 and trying to hold this key level after experiencing a Trump-tariff-related selloff last Friday

• Defence stocks back in the spotlight, with Droneshield (+17.9%) closing at all-time highs and Electro Optic Systems (+12.8%) rallying on a trading update. No major drivers, though plenty of drone/escalating headlines from Russia/Ukraine over the weekend

Economy

No major economic announcements.

Latest news

Interesting Movers

Trading higher

• +17.9% Droneshield (DRO) – Defence sector move

• +15.2% Novonix (NVX) – Critical operational milestone

• +14.2% Minerals 260 (MI6) – No market sensitive announcement

• +4.5% Austal (ASB) – Defence sector move

• Gold miners – Pantoro (+9.6%), St Barbara (+8.0%), Meeka Metals (+4.7%), Evolution Mining (+4.3%), Newmont (+4.0%), Genesis (+3.7%), Resolute (+3.6%), Ramelius (+3.2%) and more

• Silver stocks – Maronan Metals (+12.1%), Silver Mines (+10.8%), Unico Silver (+9.2%), Sun Silver +4.8%)

Trading lower

• -3.6% Regis Healthcare (REG) – down 34% in the last six sessions after government funding shortfall

• Iron ore sector move – Fortescue (-2.0%), Champion Iron (-1.9%), Rio Tinto (-1.5%)

• Coal sector move – Coronado Global (-9.6%), Stanmore (-3.4%), Whitehaven Coal (-3.3%), New Hope (-2.6%), Yancoal (-1.2%)

• Uranium stocks – Boss Energy (-2.3%), Paladin Energy (-2.3%) and Deep Yellow (-2.2%)

Broker notes

4DMedical (4DX)

• Initiated at buy at Jefferies; Price Target: $2.50

Atlantic Lithium (A11)

• Downgraded to neutral from outperform at Macquarie; Price Target: $0.16

Australian Clinical Labs (ACL)

• Retained at neutral at Macquarie; Price Target: $2.90

Aristocrat Leisure (ALL)

• Retained at overweight at Morgan Stanley; Price Target: $72.20

Amcor Plc (AMC)

• Retained at outperform at Macquarie; Price Target: $17.44

AMP (AMP)

• Retained at overweight at Morgan Stanley; Price Target: $1.95

ANZ Group Holdings (ANZ)

• Retained at neutral at Citi; Price Target: $32.50

• Retained at equal-weight at Morgan Stanley; Price Target: $30.50

Aspen Group (APZ)

• Retained at buy at Bell Potter; Price Target: $4.85

BHP Group (BHP)

• Retained at overweight at Morgan Stanley; Price Target: $46.50

Boss Energy (BOE)

• Retained at underweight at Morgan Stanley; Price Target: $1.65

BlueScope Steel (BSL)

• Retained at equal-weight at Morgan Stanley; Price Target: $24.00

Commonwealth Bank of Australia (CBA)

• Retained at sell at Citi; Price Target: $130.00

• Retained at sell at UBS; Price Target: $125.00

Centuria Industrial REIT (CIP)

• Retained at buy at Bell Potter; Price Target: $3.65

Centuria Capital Group (CNI)

• Retained at buy at Bell Potter; Price Target: $2.40

Centuria Office REIT (COF)

• Retained at sell at Bell Potter; Price Target: $1.10

Computershare (CPU)

• Upgraded to neutral from sell at Goldman Sachs; Price Target: $39.50 from $39.00

CSL (CSL)

• Retained at buy at Citi; Price Target: $265.00

• Retained at hold at Ord Minnett; Price Target: $258.00

• Retained at buy at UBS; Price Target: $300.00

Corporate Travel Management (CTD)

• Downgraded to neutral from buy at Citi; Price Target: $16.10 from $15.65

Centaurus Metals (CTM)

• Retained at outperform at Macquarie; Price Target: $0.60

Cedar Woods Properties (CWP)

• Retained at buy at Bell Potter; Price Target: $8.75

Digico Infrastructure REIT (DGT)

• Retained at hold at Bell Potter; Price Target: $3.00

• Retained at neutral at E&P; Price Target: $3.61

Dexus Convenience Retail REIT (DXC)

• Retained at buy at Bell Potter; Price Target: $3.45

Dexus Industria REIT (DXI)

• Retained at buy at Bell Potter; Price Target: $3.10

EMvision Medical Devices (EMV)

• Retained at speculative buy at Bell Potter; Price Target: $3.15 from $2.95

Evolution Mining (EVN)

• Downgraded to hold from buy at Canaccord Genuity; Price Target: $9.50 from $8.50

FINEOS Corporation Holdings PLC (FCL)

• Retained at buy at Citi; Price Target: $3.25 from $2.35

Fortescue (FMG)

• Retained at overweight at Morgan Stanley; Price Target: $19.90

GDI Property Group (GDI)

• Retained at buy at Bell Potter; Price Target: $0.85

Global Lithium Resources (GL1)

• Retained at underperform at Macquarie; Price Target: $0.13

Gemlife Communities Group (GLF)

• Retained at overweight at Morgan Stanley; Price Target: $5.40

Goodman Group (GMG)

• Retained at buy at Bell Potter; Price Target: $40.80

• Retained at overweight at Morgan Stanley; Price Target: $41.50

HealthCo Healthcare and Wellness REIT (HCW)

• Retained at buy at Bell Potter; Price Target: $1.00

HomeCo Daily Needs REIT (HDN)

• Retained at hold at Bell Potter; Price Target: $1.40

HMC Capital (HMC)

• Retained at hold at Bell Potter; Price Target: $3.60

Integral Diagnostics (IDX)

• Retained at outperform at Macquarie; Price Target: $3.40

Infratil (IFT)

• Retained at positive at E&P; Price Target: $12.19

IGO (IGO)

• Retained at underweight at Morgan Stanley; Price Target: $3.90

Iluka Resources (ILU)

• Retained at equal-weight at Morgan Stanley; Price Target: $3.65

Lifestyle Communities (LIC)

• Retained at hold at Bell Potter; Price Target: $5.70

Lynas Rare Earths (LYC)

• Retained at overweight at Morgan Stanley; Price Target: $14.75

Macquarie Technology Group (MAQ)

• Retained at positive at E&P; Price Target: $112.00

Mineral Resources (MIN)

• Retained at overweight at Morgan Stanley; Price Target: $41.50

• Retained at outperform at RBC Capital Markets; Price Target: $41.00

Macquarie Group (MQG)

• Retained at equal-weight at Morgan Stanley; Price Target: $216.00

• Retained at neutral at UBS; Price Target: $225.00

Monash IVF Group (MVF)

• Retained at outperform at Macquarie; Price Target: $1.00

National Australia Bank (NAB)

• Retained at sell at Citi; Price Target: $36.00

NEXTDC (NXT)

• Retained at positive at E&P; Price Target: $28.66

Paladin Energy (PDN)

• Retained at equal-weight at Morgan Stanley; Price Target: $7.30

Pilbara Minerals (PLS)

• Retained at outperform at Macquarie; Price Target: $2.30

• Retained at overweight at Morgan Stanley; Price Target: $2.30

PMET Resources Inc (PMT)

• Retained at outperform at Macquarie; Price Target: $0.50

Premier Investments (PMV)

• Retained at buy at Bell Potter; Price Target: $26.50

Pantoro Gold (PNR)

• Upgraded to hold from sell at Bell Potter; Price Target: $5.35 from $4.40

Perenti (PRN)

• Retained at hold at Bell Potter; Price Target: $2.80 from $2.15

Region Group (RGN)

• Retained at buy at Bell Potter; Price Target: $2.70

Rio Tinto (RIO)

• Retained at equal-weight at Morgan Stanley; Price Target: $121.00

Ramelius Resources (RMS)

• Initiated at accumulate at Morgans; Price Target: $4.00

South32 (S32)

• Retained at overweight at Morgan Stanley; Price Target: $3.30

SEEK (SEK)

• Retained at overweight at Morgan Stanley; Price Target: $32.50

Sandfire Resources (SFR)

• Retained at underweight at Morgan Stanley; Price Target: $8.35

Summit Minerals (SUM)

• Retained at buy at Bell Potter; Price Target: $15.25

Tabcorp Holdings (TAH)

• Upgraded to buy from neutral at UBS; Price Target: $1.12 from $0.68

The Lottery Corporation (TLC)

• Retained at equal-weight at Morgan Stanley; Price Target: $5.60

Telix Pharmaceuticals (TLX)

• Retained at buy at Citi; Price Target: $34.00

Westpac Banking Corporation (WBC)

• Retained at neutral at Citi; Price Target: $36.50

Whitehaven Coal (WHC)

• Retained at overweight at Morgan Stanley; Price Target: $8.30

Xero (XRO)

• Retained at overweight at Morgan Stanley; Price Target: $235.00

Scans