The Australian sharemarket experienced a strong performance in February, rising 4 per cent and marking its best reporting season since 2017. Companies generally exceeded earnings expectations, despite increasing global tensions. According to Global X ETFs senior product and investment strategist Marc Jocum, these results offer a stabilising influence for investors amidst geopolitical uncertainty.
Jocum noted that while the ASX is not immune to global risk aversion, its commodity-heavy composition provides a natural hedge against geopolitical instability. He pointed out that energy producers benefit from oil price increases, gold miners from safe-haven investment flows, and critical minerals from both geopolitical risk premiums and long-term demand related to AI infrastructure.
Earnings revision momentum is currently at its strongest level in over three years, with the market anticipating mid-double-digit EPS growth for fiscal year 2026, according to Jocum. The resources and financials sectors led the gains. Superloop, a telecommunications provider that builds and operates fibre networks, rose 28.3 per cent. Lynas Rare Earths, a company focused on mining and processing rare earth minerals, saw a 27.4 per cent increase, and Iluka Resources gained 25.9 per cent. Commonwealth Bank recorded its largest single-day gain in six years.
