A fourth month of ASX gains

By the Editorial Team · Saturday, August 1, 2026

The S&P/ASX 200 index rose for the fourth consecutive month, supported by strong gains in materials stocks driven by rising copper prices linked to AI technology development. This upward trend reflects growing investor confidence in AI-related sectors and is reinforced by lower-than-expected inflation data and expectations that the Reserve Bank of Australia will maintain the current cash rate.

The S&P/ASX 200 index extended its winning streak to a fourth consecutive month on Friday, buoyed by strong performances in materials stocks that reflected growing investor interest in artificial intelligence (AI)-related sectors. The benchmark index rose 9.1 points, or 0.1 percent, to close at 8,976.8, while the broader All Ordinaries gained 14.3 points, or 0.16 percent, finishing at 9,137.

Materials companies were the standout performers during the session, with BHP advancing 1.96 percent to $60.31 and Rio Tinto climbing 1.28 percent to $170.57. These gains were driven largely by rising copper prices, which investors view as a critical input for AI technology development. Joseph Marassa, an analyst at Global X ETFs, noted that materials stocks are increasingly seen as a local proxy for AI-related trades, especially in the context of overnight gains in the US technology sector and renewed optimism around emerging AI technologies.

The strength in materials followed a robust performance in global markets, with South Korea’s KOSPI index jumping 17.9 percent, fueled by significant gains in chip makers SK Hynix and Samsung Electronics. The US Nasdaq 100 also enjoyed a strong rise of 3.36 percent in Thursday’s trading, reflecting heightened enthusiasm for technology shares tied to AI advancements.

However, the positive momentum in materials was partially counterbalanced by declines in healthcare and consumer staples sectors. Vaccines manufacturer CSL dropped 3.8 percent to $123.06, Sigma Healthcare declined 0.68 percent to $2.94, and medical equipment maker ResMed eased 1.52 percent to $29.79. The consumer staples segment also experienced weakening, with major supermarket chains Woolworths and Coles falling 1.73 percent to $39.77 and 0.7 percent to $24.09 respectively, while A2 Milk slipped 2.55 percent to $6.89.

IG senior market analyst Tony Sycamore highlighted that, despite subdued trading on Friday, the ASX 200 marked its fourth straight month of gains, rising 2.37 percent for July. This performance aligns closely with the 10-year average July increase of 2.73 percent. Sycamore attributed recent gains to lower-than-expected inflation data for June and a measured stance from the Reserve Bank of Australia governor, which reinforced expectations that the official cash rate would be held steady at 4.35 percent in the near term.

In corporate news, 4D Medical surged 13.08 percent to $3.63 following a quarterly report that disclosed a 23 percent increase in operating revenue to $7.2 million compared with the previous corresponding period. Origin Energy also advanced 0.94 percent to $10.76 after reporting a 6 percent increase in June quarter revenue to $1.96 billion. Meanwhile, Energy One’s shares jumped 31.8 percent to $14.30 after the company received an unsolicited, indicative, conditional buyout proposal from Norwegian group Volue, which does not currently involve bidding.

The Australian dollar meanwhile strengthened, trading at US70.32 cents by the close.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.