Category: Stock Market

It was a stunning day on the Australian share market this Wednesday, with the S&P/ASX 200 Index (ASX: XJO) rebounding strongly after the malaise we saw earlier in the week.

After staying comfortably in green territory all day, the ASX 200 ended up closing a solid 1.3% higher, leaving the index at 8,793.6 points.

This happy hump day for ASX investors follows a similarly upbeat night over on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) was in fine form, rising 0.73%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) did even better, gaining 1.03%.

But let’s get back to the ASX now though and dive a little deeper into what was happening amongst the various ASX sectors navigated today’s tough trading conditions.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Why the ASX 200 is charging higher today
• Why DigiCo, HMC Capital, Infratil, and Qantas shares are taking off today
• Why is this $10 billion ASX stock racing 12% higher today?
• Why this $3.8 billion ASX gold stock is climbing today
• Which ASX 200 stock is lifting after a hostile takeover update?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With all of the consequential events occurring on the global stage on a seemingly daily basis right now, it can be hard to keep track of what is happening on the Australian financial landscape. For those who have been keeping their eyes on the ball, it may have been noted that something rather significant is happening with our Aussie dollar.

The Australian dollar has actually been on a tear of late. It was only in April of 2025 that the local currency dropped to a COVID-era low of about 60 US cents. That was thanks to the subsequently-walked-back-and-then-declared-illegal ‘liberation day’ tariff announcement from the US President Donald Trump.

Today, just over a year later, things look quite different. It was only in late January that the Aussie dollar crossed 70 US cents for the first time since early 2023. Over the past week, we saw the Aussie hit, and then exceed, 72 US cents. Today, one Australian dollar will buy you about 72.5 US cents at the time of writing. That’s the highest level the Aussie has traded at against the Greenback in almost exactly four years.

Many Australians only check the Aussie dollar exchange rate when they’re about to book an international holiday. But our dollar’s value is a vitally important economic catalyst, one that can have huge impacts on a variety of ASX shares. Let’s dig into how that works.

To put it simply, a rising Aussie dollar makes exports more expensive for companies that send goods overseas, and makes importing goods from overseas into Australia cheaper, provided all other things remain equal.

Which ASX shares benefit from a higher Aussie dollar?

As such, the biggest losers from a higher Aussie dollar are arguably mining companies, as well as energy companies. Stocks like BHP Group Ltd (ASX: BHP), Woodside Energy Group Ltd (ASX: WDS), Northern Star Resources Ltd (ASX: NST) and Whitehaven Coal Ltd (ASX: WHC) are forced to sell their iron ore, oil, gold and coal in US dollars on the international market. If our dollar rises in value, these companies will receive fewer Aussie dollars when they bring the US dollars they receive upon the sale of their commodities back home to the ASX.

Any other ASX share that sends goods or services to countries beyond our shores, or brings back foreign currencies to the ASX, is also in the firing line. That might include Cochlear Ltd (ASX: COH) and CSL Ltd (ASX: CSL), for example.

But what about winners from a higher dollar? Well, we have those too. As you can probably gather, any country that imports goods to resell to Australians will benefit from a higher dollar. Some names that come to mind include Wesfarmers Ltd (ASX: WES), JB Hi-Fi Ltd (ASX: JBH), Harvey Norman Holdings Ltd (ASX: HVN) and Ampol Ltd (ASX: ALD).

Wesfarmers imports most of the goods sold at its retailers, like Kmart, OfficeWorks, Target, and Bunnings, from their country of manufacture, which is typically China. It would be a similar story with JB and Harvey Norman’s televisions and appliances, or Ampol’s imported fuels.

Unfortunately, the closure of the Strait of Hormuz is probably dampening, if not eliminating, the benefits of our higher dollar for these stocks right now. But whenever the Strait reopens, these stocks will feel the full benefits of a rising Aussie dollar. That’s assuming the dollar stays where it is, or keeps going higher, of course.

The post The Aussie dollar just hit a 4-year high. Which ASX shares will benefit? appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares I would buy for both growth and passive income today
• Warning! Experts name 3 ASX 200 shares to sell
• Why the ASX 200 is charging higher today
• Why JB Hi-Fi, Magellan, Lottery Corp, and Woodside shares are falling today
• Warning: JB Hi-Fi shares tumble as investors look past sales growth

Motley Fool contributor Sebastian Bowen has positions in CSL and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Cochlear, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended BHP Group, CSL, Cochlear, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Some investors separate growth and income into different buckets.

I understand that. A fast-growing company may reinvest heavily and pay little income, while a mature dividend stock may offer yield but limited growth.

But I do not think investors always have to choose. Some ASX shares can offer a useful blend of both.

Two that stand out to me today are named below.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is not the highest-yielding stock on the ASX, but I think its approximate 3% dividend yield looks appealing when combined with the quality of the business.

For me, Wesfarmers is a growth and income stock because it has more ways to win than many large companies.

Bunnings remains the obvious powerhouse. It has a strong market position, a trusted brand, and exposure to home improvement spending across both consumer and commercial customers.

But the broader group is what makes Wesfarmers more interesting. Kmart continues to benefit from its value positioning, which I think is particularly useful when households are watching their spending. Officeworks gives exposure to education, small business, and technology spending. Wesfarmers Health is still being reshaped and could become a more meaningful contributor over time.

Then there is the lithium exposure through WesCEF, which adds a very different growth angle.

Overall, I think Wesfarmers shares are a buy because the company has a long record of reinvesting sensibly, improving its businesses, and returning cash to shareholders. That combination is exactly what I like in a long-term holding.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is the higher-growth pick of the two.

The jewellery retailer has built a global rollout model that still looks very powerful to me. It sells affordable fashion jewellery, which gives it a relatively simple product proposition, but the execution is what makes the business stand out.

Lovisa can open stores in many different markets, keep formats small, and use its buying, merchandising, and pricing model to generate strong returns. That gives the company a long runway if it keeps executing well internationally.

Its first-half results showed total revenue rising 23.3%, supported by store network growth and comparable store sales growth. Lovisa opened 85 new stores during the half and finished the period with 1,095 stores across more than 50 markets.

Importantly for income investors, it also lifted its interim dividend to 53 cents per share, 50% franked. That is why I think Lovisa is so interesting as a growth and income stock.

The dividend yield of around 3.2% is already useful, but the real appeal is that the income could grow over time if the global store rollout continues successfully.

There are risks. Fashion retail can be competitive, consumer spending can shift, and international expansion is never automatic.

But Lovisa’s model has already travelled across many markets, and I think that gives investors a reason to stay optimistic.

Foolish takeaway

If I were looking for ASX shares that offer both growth and passive income, Wesfarmers and Lovisa would be high on my list.

They are very different businesses, but both offer dividends today and the potential for a larger business tomorrow.

The post 2 ASX shares I would buy for both growth and passive income today appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target $10,000 of monthly passive income?
• Own Wesfarmers shares? It’s expanding into modular apartment construction
• I’m worried about the ASX 200 falling further. Here’s why
• CSL, Wesfarmers, Endeavour shares crash to multi-year lows: Buy, hold, or sell?
• CSL and Wesfarmers among scores of ASX shares hitting fresh 52-week lows

Motley Fool contributor Grace Alvino has positions in Lovisa and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and Wesfarmers. The Motley Fool Australia has recommended Lovisa and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many of Australia’s top brokers have been busy adjusting their financial models and recommendations. This has led to a number of broker notes being released this week.

Three ASX shares that brokers have named as buys this week are listed below. Here’s why their analysts are feeling bullish on them right now:

Aristocrat Leisure Ltd (ASX: ALL)

According to a note out of Bell Potter, its analysts have retained their buy rating on this gaming technology company’s shares with a reduced price target of $61.00. It notes that industry data shows that Aristocrat’s games remained highly compelling to players in the North American market in March. In addition, the company has recently launched three new franchises into the market, some of which are core market favourites and have started off with strong performances. Outside this, the broker believes that Aristocrat’s leading R&D investment will drive market share gains and support further growth. And with a very strong balance sheet, Bell Potter notes that Aristocrat has substantial M&A firepower to boost growth inorganically. The Aristocrat share price is trading at $47.66 on Wednesday.

Flight Centre Travel Group Ltd (ASX: FLT)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $17.95 price target on the travel agent’s shares. This follows the release of a trading update, which revealed that management has retained its guidance for FY 2026. Macquarie notes that this reflects a strong corporate performance, which is offsetting disruption in the leisure segment. Together with ongoing cost discipline and productivity gains, the broker believes the company is well-placed to grow its earnings. The Flight Centre share price is fetching $10.67 at the time of writing.

WiseTech Global Ltd (ASX: WTC)

Another note out of Bell Potter reveals that its analysts have retained their buy rating and $78.75 price target on this logistics solutions technology company’s shares. This follows the reaffirmation of its guidance at a broker conference this week. Based on what management is targeting in FY 2026, Bell Potter is starting to believe that its FY 2027 forecasts could prove to be conservative. In light of this, the broker is eagerly awaiting its results in August. It sees WiseTech’s FY 2027 guidance as a potential catalyst to driving a re-rating in its share price. The WiseTech Global share price is trading at $44.96 this afternoon.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Down 16% year to date, Bell Potter thinks now is the time to buy low on this ASX 200 stock
• Why WiseTech shares could shoot 70% higher
• Have beaten-down ASX gaming stocks finally hit a bottom?
• 5 things to watch on the ASX 200 on Wednesday
• Forget gold! Start hunting fallen ASX 200 shares to buy for an earlier retirement

Motley Fool contributor James Mickleboro has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and WiseTech Global. The Motley Fool Australia has positions in and has recommended Macquarie Group and WiseTech Global. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Knowing which ASX 200 shares to avoid can be just as important as knowing which ones to buy when aiming to maximise portfolio returns.

So, with that in mind, let’s see which shares analysts are tipping as sells this week, courtesy of The Bull.

Here’s what they are bearish on:

Commonwealth Bank of Australia (ASX: CBA)

The team at Alto Capital thinks that CBA is an ASX 200 share to sell this week.

Due to the banking giant’s current valuation, it thinks investors should consider taking profits. It explains:

Australia’s largest retail bank enjoys a dominant position across mortgages, deposits and consumer banking. The company recently reported a record first half cash net profit after tax in 2026 of $5.445 billion, supported by lending growth and strong deposit volumes. Recently, the share price had re-rated significantly and traded at a premium to domestic peers and global banking counterparts. With much of the operational strength already reflected in the valuation, the risk-reward balance favours taking profits at current levels.

JB Hi-Fi Ltd (ASX: JBH)

Over at Fairmont Equities, its analysts think that retail giant JB Hi-Fi could be an ASX share to sell now.

The equities firm believes that higher fuel prices and interest rates could weigh on the performance of discretionary retail stocks. It said:

With interest rates possibly rising again on top of higher fuel prices, we would be cautious about discretionary retail stocks. Households are under increasing pressure from higher cost of living expenses, which could result in consumers cutting discretionary spending. This consumer electronics giant faces the challenge of sustaining revenue and earnings in a potentially softer economy. From a charting perspective, the share price remains in a downtrend. The shares have fallen from $121 on August 20, 2025 to trade at $78.10 on April 30, 2026. We would be inclined to cash in some gains at this stage of the cycle.

Westpac Banking Corp (ASX: WBC)

Fairmont Equities has also named big four bank Westpac as an ASX 200 share to sell this week.

It thinks that a recent trading update shows that economic conditions could be getting challenging. As a result, it would not be surprised to see Westpac shares take a tumble. Fairmont Equities said:

We had previously been bullish on the banks when they were trending higher from high levels of momentum. However, they are stalling at current levels. A recent trading update by WBC indicated economic conditions could be getting tougher in response to rising interest rates, inflation and potential fuel shocks. In our view, challenging economic conditions are likely to impact lending activity and credit quality. Even a robust dividend yield may not be enough to prevent a further slide in WBC’s share price.

The post Warning! Experts name 3 ASX 200 shares to sell appeared first on The Motley Fool Australia.

More reading

• Why the ASX 200 is charging higher today
• Why JB Hi-Fi, Magellan, Lottery Corp, and Woodside shares are falling today
• Interest rates are back at 15-year highs. Here’s what CBA expects now
• Warning: JB Hi-Fi shares tumble as investors look past sales growth
• JB Hi-Fi Q3 FY26 sales update: Australia & NZ drive growth

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is pushing higher on Wednesday as investors move back into the major banks.

At the time of writing, the ASX 200 is up 0.91% to 8,759 points.

That follows a 0.19% fall on Tuesday and puts the benchmark index back on firmer ground heading into the afternoon.

The move is being led by the S&P/ASX 200 Financials Index (ASX: XFJ), with all 4 major banks trading strongly higher.

There is also support coming from parts of the S&P/ASX 200 Resources Index (ASX: XJR), although the gains are not spread evenly across the market.

Here’s what investors are looking at today.

Banks do the heavy lifting

The major lenders are doing most of the work today, helped by their large weighting in the ASX 200.

Commonwealth Bank of Australia (ASX: CBA) shares are up 2.65% to $177.44, while Westpac Banking Corp (ASX: WBC) is jumping 3.75% to $39.04.

National Australia Bank Ltd (ASX: NAB) is also higher, rising 3.09% to $40.16. ANZ Group Holdings Ltd(ASX: ANZ) is up 3.17% to $37.09.

Macquarie Group Ltd (ASX: MQG) is also helping the sector, with its shares up 1.39% to $240.28.

The buying comes after the market pulled back on Tuesday following the Reserve Bank of Australia’s (RBA) latest rate hike. The cash rate now sits at 4.35%, but investors appear to be looking past the immediate shock today.

While a higher interest rate backdrop generally supports bank margins, it can also put more pressure on borrowers and the stock market.

Miners add more support

The resources sector is also helping the ASX 200 hold its gains.

BHP Group Ltd (ASX: BHP) shares are up 1.69% to $55.65, while Rio Tinto Ltd (ASX: RIO) is 0.66% higher at $171.81.

Fortescue Ltd (ASX: FMG) is also in the green, rising 1.62% to $20.35.

Gold is another supportive factor today, with the precious yellow metal up 2.03% to US$4,648.63 an ounce. That helps explain some of the buying across gold and mining names, although not every resource stock is joining the move.

On the other side, Woodside Energy Group Ltd (ASX: WDS) is down 2.35% to $31.94 as oil prices weaken.

Not every major stock is rising

There are still several large names holding the index back.

CSL Ltd (ASX: CSL) is down 0.33% to $123.96, while Telstra Group Ltd (ASX: TLS) is 0.83% lower. Woolworths Group Ltd (ASX: WOW) is also weaker, falling 0.78%.

The index is having a strong day, but the buying is still concentrated in banks and a few miners.

It is still a solid gain, but the strength is not showing up evenly across the market.

The post Why the ASX 200 is charging higher today appeared first on The Motley Fool Australia.

More reading

• Warning! Experts name 3 ASX 200 shares to sell
• Why JB Hi-Fi, Magellan, Lottery Corp, and Woodside shares are falling today
• Why is this $10 billion ASX stock racing 12% higher today?
• Interest rates are back at 15-year highs. Here’s what CBA expects now
• Which ASX 200 stock is lifting after a hostile takeover update?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group, Telstra Group, and Woolworths Group. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is having a strong session on Wednesday. In afternoon trade, the benchmark index is up 0.85% to 8,754.5 points.

Four ASX shares that have failed to follow the market higher today are named below. Here’s why they are falling:

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price is down over 7% to $72.12. This follows the release of a sales update from the retail giant this morning. The company revealed that JB Hi-Fi Australia total sales rose 4% and The Good Guys sales lifted 2.5% for the third quarter. However, while this was strong, comments from CEO Nick Wells appear to have spooked investors. He said: “As we enter the important end of financial year trading period, in the technology categories we are seeing significant supplier component related cost increases and stock availability shortages, along with heightened competitive activity.”

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is down 6% to $9.03. This fund manager’s shares have come under pressure this week after announcing sweeping changes to its global fund. This includes management fees being cut from 1.35% to 0.89% per annum and performance fees being removed. In addition, management of the Magellan Global Fund and Magellan Global Fund Hedged will change to Vinva Investment Management. Magellan’s CEO, Sophia Rahmani, said: “We have carefully considered this decision and are prioritising client outcomes whilst at the same time positioning Magellan for long-term growth, with an attractive core global equities offering.”

Lottery Corporation Ltd (ASX: TLC)

The Lottery Corporation share price is down 5.5% to $5.26. This appears to have been driven by a broker note out of Morgan Stanley this morning. According to the note, the broker has downgraded the lotteries company’s shares to an equal-weight rating with a $5.70 price target. Morgan Stanley made the move partly on the belief that second-half trading has been softer than expected due to weaker jackpot activity.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside Energy share price is down 2% to $32.02. Investors have been selling Woodside shares following a pullback in oil prices. This has been triggered by optimism that the US and Iran could be close to signing a peace deal. It isn’t just Woodside that is falling today. The S&P/ASX 200 Energy index is down 1.7% at the time of writing.

The post Why JB Hi-Fi, Magellan, Lottery Corp, and Woodside shares are falling today appeared first on The Motley Fool Australia.

More reading

• Warning: JB Hi-Fi shares tumble as investors look past sales growth
• JB Hi-Fi Q3 FY26 sales update: Australia & NZ drive growth
• Why Appen, Gentrack, Magellan, and Regis Resources shares are falling today
• Sell alert! Why this expert is calling time on JB Hi-Fi and Westpac shares
• Why Magellan shares are getting smashed today

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended The Lottery Corporation. The Motley Fool Australia has recommended The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Viva Energy Group Ltd (ASX: VEA) shares are sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $2.45. In early afternoon trade on Wednesday, shares are changing hands for $2.39 apiece, down 2.5%.

For some context, the ASX 200 is up 1.0% at this same time.

Taking a step back, Viva Energy shares remain up 33.5% over the past 12-months, racing ahead of the 7.5% one-year gains posted by the benchmark index.

And that’s not including the 6.7 cents a share in fully franked dividends the energy company paid to eligible stockholders over this time. Viva Energy trades on a 2.8% fully franked trailing dividend yield.

But with investor concerns remaining over the 15 April fire at Viva Energy’s Geelong refinery in Victoria – one of just two remaining in Australia – and with shares still down 5.5% since then, is this ASX 200 stock now a buy, hold or sell?

Should you buy Viva Energy shares today?

Baker Young’s Toby Grimm recently analysed the outlook for this $4 billion ASX energy share (courtesy of The Bull).

According to Grimm:

Energy market dislocation highlights the strategic importance of Viva Energy’s refining operations, particularly in light of the recently enhanced Federal government subsidy framework.

As for the refinery fire, Grimm noted, “While the recent fire at the Geelong facility is a setback, the financial impact appears manageable and unlikely to offset the benefit of elevated refining margins.”

Connecting the dots, Grimm issued a hold recommendation on Viva Energy shares.

He concluded:

Higher fuel prices may weigh on convenience retail performance, which had shown signs of a recovery. Over time, refining margins are expected to normalise, but the stock appears well supported in the near term.

What’s the latest from the ASX 200 energy stock?

In an update on the Geelong refinery fire released on 4 May, Viva Energy revealed that the coming weeks will see it produce diesel and jet fuel at around 80% of capacity. And petrol production will be limited to around 60% capacity while the refinery’s Residue Catalytic Cracking Unit (RCCU) remains offline.

Viva Energy said it expects the required repair work to restart the RCCU to take around six weeks. In June, the company is aiming to ramp production back up to more than 90% of capacity following the restart of the RCCU.

As for any potential impact on Viva Energy shares from the Iran war, the company noted:

The Geelong refinery does not typically source Middle Eastern crude, with current crude sourced predominantly from North and South America, South-East Asia, and Australia. These crude supply flows have not been impacted, and the Geelong refinery has firm crude supply through to July with high confidence that this supply can continue.

The post Viva Energy shares: Buy, hold or sell? appeared first on The Motley Fool Australia.

More reading

• Brent crude oil price rips to 4-year high amid missile strikes in Strait of Hormuz
• Buy, hold, sell: Deep Yellow, IGO, and Viva Energy shares
• Why Viva Energy, Transurban and NAB shares are turning heads on Monday
• Viva Energy updates investors on Geelong Refinery operations
• ASX 200 energy shares lead and market finally cracks 8-day losing streak

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is back on form and charging higher. In afternoon trade, the benchmark index is up 0.85% to 8,754.3 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are storming higher:

DigiCo Infrastructure REIT (ASX: DGT)

The DigiCo Infrastructure REIT share price is up 22% to $2.89. This morning, the data centre company announced a binding agreement to sell its CHI1 facility in Chicago for US$750 million. This represents a 5% premium to its November 2024 purchase price. The sale is expected to complete in the first quarter of FY 2027. This will take its pro forma net debt to approximately $0.5 billion, while gearing is expected to drop from 36% to 17%. Management intends to redeploy capital into the SYD1 development in Sydney, which it describes as its most compelling growth opportunity. It may also look at returning funds to shareholders.

HMC Capital Ltd (ASX: HMC)

The HMC Capital share price is up 15% to $2.90. This follows the release of a business update from the investment company today. Management advised that fund management earnings are maintaining their growth trajectory and tracking to guidance. As a result, it has reaffirmed its pre-tax operating earnings per share guidance of greater than 40 cents per share. It has also reaffirmed its dividend guidance of 12 cents per share. That represents a 4.1% dividend yield at current prices.

Infratil Ltd (ASX: IFT)

The Infratil share price is up 12% to $11.77. This follows news that its 49.7%-owned data centre business, CDC, has signed Australia’s largest-ever data centre contract. It has agreed a 555MW deal with a US investment grade customer, taking total CDC contracted capacity to over 1 gigawatt. When fully deployed, management estimates that CDC’s total contracted capacity would deliver annualised EBITDA of approximately NZ$2 billion. Infratil’s CEO, Jason Boyes, said: “Today’s announcement underscores Australasia’s opportunity to attract global computing capacity, supported by regional stability, competitive build costs and access to renewable energy.”

Qantas Airways Ltd (ASX: QAN)

The Qantas Airways share price is up over 2% to $8.59. This appears to have been driven by a pullback in oil prices after Donald Trump signalled that progress is being made with a US-Iran peace deal. This would be good news for Qantas, especially given how fuel is the company’s largest expense.

The post Why DigiCo, HMC Capital, Infratil, and Qantas shares are taking off today appeared first on The Motley Fool Australia.

More reading

• Why is this $10 billion ASX stock racing 12% higher today?
• Why this ASX data centre stock is rocketing over 20% today
• DigiCo Infrastructure REIT slashes debt after Chicago asset sale
• Infratil shares: CDC inks Australia’s largest data centre contract
• Should I buy CBA and Qantas shares this month?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended HMC Capital. The Motley Fool Australia has recommended HMC Capital. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX stock Infratil Ltd (ASX: IFT) surged 12.7% to $11.83 in Wednesday afternoon trade. The surge came after a major announcement from its data centre business CDC.

The ASX stock is now up around 23% year to date, comfortably outperforming the broader S&P/ASX 200 Index (ASX: XJO), which is essentially flat over the same period.

So what’s driving the sharp move higher?

Largest data centre deal

The catalyst for the soaring share price is a landmark contract signed by CDC Data Centres. The company has secured what is being described as Australia’s largest-ever data centre deal.

ASX stock Infratil is an infrastructure investment company with assets spanning renewable energy, healthcare, airports and digital infrastructure. One of its most important holdings is CDC, a rapidly growing operator of hyperscale data centres across Australia.

CDC sits at the centre of rising demand for cloud computing, artificial intelligence infrastructure and sovereign data storage. It builds and operates large-scale, highly secure facilities that underpin the digital services used by governments, enterprises and global technology firms.

The $555MW mega-deal explained

The latest contract is a major milestone for CDC and the ASX stock. CDC has signed a 555MW long-term agreement with a US investment-grade customer. The deal includes a 30-year contract for 555MW of new capacity, with options to extend for a further 20 years. With this agreement,

CDC’s total contracted capacity now exceeds 1 gigawatt. That’s more than double its previous contracted base.

Importantly, the scale of this deal highlights CDC’s dominant position in the market. The 555MW alone represents roughly 40% of Australia’s total expected data centre operating capacity in 2025, underlining just how significant this expansion is for the industry.

The capacity is already under development and scheduled to come online across FY28 and FY29. That means it fits within existing construction plans and does not require a major change in capital strategy.

Strong financial position and growth runway

CDC’s balance sheet remains robust, with about $3.9 billion in cash and undrawn facilities as of 31 March. Earlier this year, shareholders including ASX stock Infratil contributed a further $500 million in equity. However, the latest contract does not require additional funding beyond current plans.

The earnings outlook also remains strong. CDC has maintained FY27 EBITDAF guidance of A$680 million to A$720 million, with FY28 EBITDAF expected to exceed A$1 billion. Beyond this contract, CDC continues to scale aggressively, with a development pipeline of around 1.6GW through to 2034.

The business has also strengthened its funding position. Moody’s Investors Service assigned CDC’s Australian operations a Baa2 (Stable) credit rating, improving access to global debt markets.

Foolish Takeaway

The market reaction reflects the scale and quality of this contract. A long-duration agreement with a major international customer provides strong revenue visibility. It also reinforces CDC’s position as a leading player in Australia’s data infrastructure boom.

For Infratil, it strengthens one of its key growth engines. It also helps explain why the ASX stock is extending its strong run in 2026.

The post Why is this $10 billion ASX stock racing 12% higher today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.