Closing Bell: ASX smashes previous closing record, up 0.7pc

• ASX hits new record closing high of 8630 points
• Broad strength across 10 of 11 sectors, led by info tech
• Rio Tinto appoints Aussie Simon Trott as new CEO

ASX closes almost 30 points higher than previous record

The ASX 200 surged to a new closing high record today, smashing its previous close of 8603 points set on July 4.

The market powered up 0.7% during the session, closing out the day at a very respectable 8630 points.

Info tech (+2.16%) and healthcare (+2.04%) led gains, weighed down but ultimately unperturbed by a sullen materials sector that shed 0.28%.

It wasn’t all gloom in the resources sector – the gold index added 1.54% and rare earth stocks continued their bullish run.

Arafura Rare Earths (ASX:ARU) climbed 5%, Metallium (ASX:MTM) jumped 16.5% and Dateline Resources (ASX:DTR) surged 28.7%.

The latter two, in particular, are viewed as potential winners from American efforts to reshore critical minerals production, laid bare in a multi-billion buckaroo public-private partnership announced with MP Materials last week. Locksley Resources (ASX:LKY), which like DTR holds ground close to MP’s Mountain Pass mine on California, was close to 24% higher.

Meanwhile, Rio Tinto (ASX:RIO) came out with some late, breaking news, appointing Simon Trott as its chief executive.

Replacing Jakob Stausholm, the move will be seen as a major win for the Australian Government, with a local boss to lead the world’s second biggest miner for the first time since Sam Walsh’s exit in 2016. Trott has been the CEO of the miner’s largest business, its Pilbara iron ore operations, since 2021, taking over after the resignation of Chris Salisbury following the Juukan Gorge scandal – a 2020 incident which also forced the exit of then CEO JS Jacques and external affairs chief Simone Niven.

Trott will take over officially on August 25, netting a base salary of 1.34 million pounds.

“It is a privilege to have the opportunity to lead Rio Tinto, and I am excited about our future,” he said.

“The progress we have made over recent years gives us a foundation to build on with discipline and focus to deliver improved performance. With our outstanding assets and people around the world, we are well positioned to grow value for shareholders and the communities who host us.”

Rio shares fell 1.31% today, with Trott’s appointment announced after market close.

Defence stocks locked and loaded

Global military expenditure shot up more than 9% from 2023 to 2024, hitting US$2.7 trillion in 2024, according to the Stockholm International Peace Research Institute.

As US President Trump turns decades of American foreign policy on its head, threatening to withdraw US support for long-standing defensive treaties, the rest of the world is responding.

The European Union has ramped up defence spending more than 30% since 2021, hitting €326 billion in 2024.

While it’s a sobering peek into the shifting tides of geopolitics, a handful of ASX defence stocks are already stepping into the supply gap.

Electro Optic Systems (ASX:EOS) jumped 10.7% in trade today, and the advanced technology system company is far from alone.

Shipbuilder and defence contractor Austal (ASX:ASB) added 2.6%, UAV connectivity solution firm Elsight (ASX:ELS) surged 19.2% and counter-drone specialist Droneshield (ASX:DRO) climbed 11.7%.

The Vaneck Global Defence ETF (ASX:DFND), which offers exposure to a portfolio of global military or defence industry companies, has also shot up more than 50% in the year to date as investors pour in.

ASX SMALL CAP LEADERS

Today’s best performing small cap stocks:

Making news…

Pure Resources (ASX:PR1) is riffing off neighbour Green Critical Minerals’ (ASX:GCM) success, launching a graphite review of the Reedy Creek project after GCM released a strong feasibility study for its own McIntosh project.

Since McIntosh surrounds Reedy Creek and shares much of the same geology, PR1 is expanding beyond extracting rare earths from garnet to investigate graphite potential, building out its critical mineral offering.

AuKing Mining (ASX:AKN) is on the hunt for rare earths at its Myoff Creek project in Canada, preparing to launch a helicopter-based aeromagnetic and radiometric survey over the tenure.

Management says they’re looking for carbonatite mineralisation over the entire 800ha project area, with a particular focus on a 1.4km by 400m zone where historical exploration highlighted near-surface niobium and rare earth mineralisation.

Imagion Biosystems (ASX:IBX) is fast-tracking manufacturing of its MagSense HER2 Imaging Agent for breast cancer detection ahead of a Phase 2 trial, after a productive meeting with the US FDA.

IBX is also preparing to submit its investigational new drug application for the imaging agent, tapping Dr William Dooley, a surgical oncologist at the University of Oklahoma Health Sciences College of Medicine, as principal investigator.

SenSen (ASX:SNS) raked in full year cash collections of $14.1m this year, a strong 13% increase over the previous reporting period.

The AI solutions provider marked its first ever year of positive operating cash flow as well, pulling in $1.9m compared to outflows of $1.3m in the previous financial year, a $3.2m improvement.

ASX SMALL CAP LAGGARDS

Today’s worst performing small cap stocks:

IN CASE YOU MISSED IT

Silver Mines (ASX:SVL) has lodged all information to assist with the redetermination of the Development Application for its flagship Bowdens Silver Project.

Zenith Minerals (ASX:ZNC) is gearing up to drill its Dulcie gold project in WA, hoping to unlock a large exploration target.

Trek Metals (ASX:TKM) has reported high grade gold from drilling at the Martin prospect at Christmas Creek, as it looks to shore up a district scale opportunity.

Miramar Resources (ASX:M2R) finds bedrock gold targets beneath Gidji aircore results.

Brazilian Critical Minerals (ASX:BCM) has selected newly formed Altris Engineering as lead engineer for the Ema project bankable feasibility study.

DigitalX (ASX:DCC) has rapidly executed its latest capital raise, deploying nearly all proceeds into Bitcoin within hours of settlement.

Chariot Corporation (ASX:CC9) has raised $1.6 million in a strategic placement to advance its Nigerian lithium portfolio.

Non-bank lender MONEYME (ASX:MME) has become a principal credit card issuer for Mastercard in Australia.

IoT technology company X2M Connect (ASX:X2M) is building on lucrative contract wins with a $4.9m capital raise to ramp-up momentum.

Many Peaks Minerals (ASX:MPK) has its sights set on a potential bulk tonnage operation at the Ferké gold project in Côte d’Ivoire.

Pioneer Lithium (ASX:PLN) has been granted the Botsalano project in southern Botswana, expanding its strategic uranium footprint.

Nova Minerals (ASX:NVA) has announced the pricing of its underwritten public offering in the US for gross proceeds of approximately US$11.1 million.

EBR Systems (ASX:EBR) has received preliminary approval from US Centers for Medicare and Medicaid Services to participate in the TPT reimbursement scheme.

TRADING HALTS

• Bowen Coking Coal (ASX:BCB) – potential voluntary administration
• Lumos Diagnostics (ASX:LDX) – pending announcement
• Macro Metals (ASX:M4M) – failure to lodge cleansing notices

At Stockhead, we tell it like it is. While Locksley Resources and Imagion Biosystems are Stockhead advertisers, they did not sponsor this article.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.