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Good Afternoon and welcome to Market Close for Tuesday 3rd of June 2025, I’m Jon Davidson.
The ASX200 had a fairly choppy day, with the index rocketing up out the gate, paring gains, then climbing again into close. Profit takers, global uncertainty, and the fact we’re heading back to 8,500 points on the XJO are all factors.
Looking at sectors, financials ended up top – despite an overnight jump for gold prices, materials didn’t jump too much as iron ore price stay low. Health Care and Discretionary competed with one another for the biggest laggards of the day.
Let’s take a look at stocks in the green.
Thinly traded nanocap Sunshine Metals saw a fat boost to liquidity on Tuesday as it reported hitting fairly high grades close to surface, including a 6 grams per tonne hit from surface. The company will fast track mining studies, but with 2 billion shares on issue, investors mightn’t be truly enticed yet.
Elsewhere, Droneshield popped today climbing well over $1.35 a share as the company enjoys a renewed enthusiasm among ASX investors of late. Why exactly the counter drone defence stock is getting juiced isn’t entirely clear, but, Tuesday’s jump comes after pressure from the US for Albo to boost defence spending.
Finally, ASX bank stock Judo Capital shook off some recent downside as it jumped on an investor day presentation. The bank says it’s done scaling itself larger, and will now work on optimising itself. With year to date returns down nearly -20% in the final hour, that remains to be seen. Still, brokers appear mostly happy to rate the stock a buy.
So now let’s turn to the reds.
Already heavily shorted foreign student player IDP Education tanked as it pointed to persistent headwinds at home and in Canada, and fresh concerns regarding foreign student intake in the UK economy. The stock sunk, once again, likely to the delight of short sellers but not so much shareholders.
Elsewhere, Treasury Wine Estates took a dip on Tuesday as it watered down FY25 guidance by around $10M, pointing to weak demand and issues with distributing its products in the US state of California. US consumers without much money for wine are also suffering; product sales under US$15 a bottle have been suffering. Still, the stock managed to eke out a green close.
Finally, a reminder to beware the ruthlessness of profit takers. Dateline Resources, made hot by recent direct mentions from Trump himself, sunk -20% as the stock sold off on Tuesday following a rapid climb to 15 cents per share on Monday. At least a few investors on Tuesday are looking forward to salmon dinner.
That’s Market Close for Tuesday, I’m Jon Davidson, have a great night and we’ll see you tomorrow.
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