2025 H1 Recap | CBA Soars, Gold Glitters! ASX Hits Record H1 Gain
$S&P/ASX 200(XJO.AU)$ closed at 8541, up 4.68% YTD, slightly lower than $S&P 500(.SPX)$’s return.
What happened in H1? Rate cuts drive the market higher.
In the first half of 2025, the Reserve Bank of Australia (RBA) cut interest rates twice. The latest cut in May lowered the official cash rate by 25 basis points to 3.85%, marking the first time since May 2023 that rates have fallen below 4%.
This shift follows a period of aggressive tightening, 13 consecutive rate hikes from May 2022 to November 2023, pushing rates to a peak of 4.1% to combat inflation. Rates then remained steady until February 2025, when the RBA delivered its first cut, bringing the rate to 4.1%, followed by May’s further easing.
The move to 3.85% not only sets a new two-year low but also signals a clear shift toward a more accommodative monetary policy stance.
Sector & stock performance: Finance and gold sector shine in H1
From a fiscal year perspective, ASX 200 index rose 9.7%, marking its strongest annual gain since the pandemic began.
This rally was largely driven by the strong performance of the financial sector, which surged 24%, with $COMMONWEALTH BANK OF AUSTRALIA(CBA.AU)$ jumping 46%. Other top gainers, including $Helia Group Limited(HLI.AU)$ , $BANK OF QUEENSLAND LTD(BOQ.AU)$ , $HUB24 LTD(HUB.AU)$ , $BENDIGO AND ADELAIDE BANK(BEN.AU)$ , and $WESTPAC BANKING CORPORATION(WBC.AU)$, also came from the financial sector.
With US banking giants set to report earnings soon, could this year’s rate cuts and market volatility further benefit the financial sector?
Gold miners also posted major gains, supported by central bank gold buying and geopolitical uncertainty. Gold stocks now account for 19% of the Small Ords index, with $Genesis Minerals Ltd(GMD.AU)$ and $GOLD ROAD RESOURCES LTD(GOR.AU)$ leading the rally.
However, not all miners performed welL $MINERAL RESOURCES LTD(MIN.AU)$ is among the worst-performing stocks in the ASX 200 this year. Concerns around corporate governance, insider trading, falling lithium prices, and high leverage have weighed heavily on its share price.
The tech sector surged 24%, while consumer discretionary retail stocks also performed well, driven by rate cut expectations.
How to expect for H2?
Morgan Stanley forecasts the S&P/ASX 200 to reach 8,500 by mid-2026, driven by an 11% earnings recovery and a 17x forward PE, with a 4.5% dividend yield enhancing appeal.
Australia’s economy benefits from fiscal stimulus, limited US tariff exposure (less than 1% of GDP), and anticipated RBA rate cuts in August and November 2025, supporting a stable investment environment.
According to Bloomberg data, the 12-month average target for the ASX 200 stands at 8,531 points.
Finance vs. gold: will the winners continue the bull trend?
Which AU stock do you recommend for other investors?
Share your ASX recap in the comment section to win tiger coins! Every comment will get at least 5 tiger coins~~
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perhaps, trending both ways...
In the first half of 2025, the Reserve Bank of Australia (RBA) cut interest rates twice. The latest cut in May lowered the official cash rate by 25 basis points to 3.85%, marking the first time since May 2023 that rates have fallen below 4%.
This shift follows a period of aggressive tightening, 13 consecutive rate hikes from May 2022 to November 2023, pushing rates to a peak of 4.1% to combat inflation. Rates then remained steady until February 2025, when the RBA delivered its first cut, bringing the rate to 4.1%, followed by May’s further easing.
Finance vs. gold: will the winners continue the bull trend?
Which AU stock do you recommend for other investors?
Share your ASX recap in the comment section to win tiger coins! Every comment will get at least 5 tiger coins~~
Check your tiger coin center and history to find out[Lovely][Lovely]
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如果让我向投资者推荐一只AU股票，我会选Macquarie Group（MQG）。它既有银行基因，又深耕基础设施与另类资产，在利率拐点来临之际，攻守兼备，颇有延续行情的潜力。