Technology stocks and big miners boost ASX

Paladin plunged 15.3 per cent after releasing its first quarter update, warning that its proposed acquisition of Fission Uranium was still awaiting approval by Canadian authorities and could be knocked back.

Northern Star Resources was the biggest laggard among large-caps after its shares tumbled 5.5 per cent, followed by AGL (down 2 per cent) and Evolution Mining (down 2 per cent).

Meanwhile, shares in ASX Limited fell 0.4 per cent. The market operator was hit with a first strike against its remuneration report at Monday morning’s annual general meeting amid investor concerns following the bungled CHESS replacement project.

More than 26 per cent of proxy shareholders voted against executive pay packets, a matter that outgoing chair Damian Roche acknowledged as one the organisation needed to address.

“It is disappointing to see that we will most likely receive a strike, and we fully acknowledge that this is a signal for us to do more work and keep engaging,” Roche said. “We have acted on what we heard and have been on a journey to methodically refresh our governance capability and ... frameworks to ensure they are fit for purpose.”

The ASX narrowly avoided a first strike at its AGM last year when 21.2 per cent of shareholders voted against the remuneration report. If it is hit with a second strike next year, shareholders could trigger a spill of the board.

The market operator has been under increased scrutiny after the corporate regulator in August launched Federal Court proceedings against the ASX for allegedly misleading statements it made in relation to the replacement of its clearing and settlement system, the Clearing House Electronic Subregister System (CHESS).

The lowdown

Barclays analysts said the market was focused on next week’s United States election, with the narrow margin between Donald Trump and Kamala Harris prompting investors to prepare for a scenario of sharp increases in tariffs, tax cuts and deregulation.

“Although polls remain extremely close, with margins too insignificant to make a call, the scenario of a Trump victory, possibly combined with a Republican sweep of the House and Senate (‘R-sweep’), is becoming the talk of markets,” Barclays noted.

“Such an outcome would likely result in wider US deficits, higher debt issuance (and thus higher rates), a strengthening of USD (in response to higher tariffs) and strong, domestic demand-driven growth, combined with domestic inflation.”

On Friday, US stock indexes gave up an early gain and drifted to a mixed finish, helping give the market its first losing week since early September.

The S&P 500 closed little changed after having been up 0.9 per cent earlier in the day. The benchmark index ended the week 1 per cent lower, ending a six-week winning streak.

The Dow Jones fell 0.6 per cent and also posted its first weekly loss after six straight gains. The Nasdaq composite eked out a 0.6 per cent gain thanks to gains for several Big Tech stocks. It extended its winning streak to seven weeks.

Both the S&P 500 and the Dow have been generally falling back from record highs set late last week. The market has been more cautious amid worries that stocks have become too expensive. Higher Treasury yields, which make stocks less appealing to investors, also added more pressure.

“There’s a degree of exhaustion following a very steady move higher,” said Mark Hackett, chief of investment research at Nationwide. “It’s just natural after that kind of move to have a period of sideways movement.”

Company earnings reports, which have been mostly solid, continued as a key focus for investors. The latest round of corporate profit reports could give Wall Street a better sense of whether the high stock prices are justified.

With AP

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