Market Wrap / resources rotation

Investors strengthening their mining positions allowed the S&P/ASX 200 to reverse earlier losses, to finish 0.8% higher at 8,927.80 points this Wednesday.

BHP even overtook CBA as the largest ASX company during the day’s trade; even as the Commonwealth Bank closed 2.6% higher. 

In the mining space, coal miners jumped with prices surging after some Indonesian miners halted exports. Further, Yancoal leaped by 9%, amid reports China is ramping up the construction of coal-fired power stations.

However, one sector lagging was the tech space. Indeed, a software stocks selloff was observed on Wall Street overnight, amid concerns that AI adoption could hit tech demand. Locally, Xero also dropped by 15.9% with research firm Morningstar viewing Xero's AI tools as defensive, rather than being a growth driver.

In company news, reporting season is intensifying, and Amcor was 3.5% higher as it reaffirmed its FY26 outlook. Meanwhile, Jumbo Interactive preliminary results showed an underlying net profit jumpiung 22% from the previous corresponding period. But the share price ended 4.8% lower as this uptick was due to a reduced amount of large lottery wins over the first half. 

More US companies are delivering results overnight, with Google’s parent Alphabet being closely watched in the tech space. Locally tomorrow, the trade balance is due, along with results from Beach Energy.