ASX: defensive stocks gain as tech and miners slide, Glencore starts trading in Sydney

what happened

According to Marketindex.com.au, the Australian market split sharply by sector at the end of last week. On Thursday, staples rose 3.4%, financials 2.1% and utilities 2.0%, while tech dropped 3.4% and materials 3.9%. The ASX 200 closed only 0.09% lower after recovering from an early drop of nearly 1%. The trigger was weak local labour data: unemployment held at 4.7% in September against expectations of 4.6%, and employment fell by 39,300 instead of an expected gain of 20,000. The Australian three-year yield slid 11 basis points to 4.81%.

In the US, core inflation rose 2.6% year on year in September, above the 2.5% forecast, and services excluding energy picked up pace. Marketindex notes that 71% of All Ords stocks trade more than 20% below their 52-week highs, though those companies account for just 30% of market value. Glencore (GLC) began trading on the ASX on Wednesday through CDIs, with no new shares issued. Canaccord Genuity suggests index inclusion could come as early as March.

Glencore is betting on copper, targeting roughly half of its earnings from the metal by 2030, while coal currently supplies about a quarter. Its trading arm, which no other ASX miner has, also delivers around a quarter of earnings.

why it matters

Money moving into staples, banks and utilities suggests investors are seeking more stable earnings, while miners and tech stocks linked to the AI trade are under pressure. Glencore trades at about 5x FY27e EV/EBITDA versus roughly 8x for BHP and Rio Tinto, which is likely to draw analyst attention.

market impact

ASX materials and tech: under pressure as money rotates into staples, banks and utilities

instruments