Quantmatix Report

Focus: Australia

Market Close: Fri, 16 January 2026

Weekly Insights

Key Medium-T DR Medium-T TopQ

At market close on Friday, Australian markets wrapped up the week with modest gains, underscoring a resilient tone amid global uncertainties. Sector rotation leaned towards cyclicals, particularly materials and energy, as commodity-related names captured investor attention. 

Key drivers and highlights this week:

  • Broad-based momentum — The market benefited from a positive lead from Wall Street (including AI and semiconductor optimism), rising metals prices (copper at records, gold/silver strength on geopolitical/safe-haven demand), and some commodity-linked resilience despite mixed oil moves.
  • Sector rotation played a big role: Investors shifted toward materials/mining (led by BHP hitting multi-year highs and nearing CBA as the largest stock, plus joint Rio Tinto/BHP iron ore plans) and healthcare (CSL, ResMed gains), while technology faced pressure (e.g., short-selling concerns on names like Xero, Life360, Wisetech).
  • Other winners included energy on occasional oil spikes (from geopolitical tensions like Iran protests), and standout individual performers (e.g., Light & Wonder up sharply early week on legal resolution, various miners/uranium plays like Deep Yellow).
  • Weaker spots — Some profit-taking in banks/financials at times (though they contributed to Friday gains), tech drag, and volatility in smaller names.

Overall, the week reflected cautious optimism entering 2026: commodity strength offsetting some rotation out of high-valuation sectors, with the index up solidly year-to-date so far and building on 2025's modest gains.

Swing Trading Ideas (1–4 Weeks) - TEVO Methodology

There are no swing trading opportunities to report this week. The TEVO methodology applies rigorous filtering criteria to identify only the highest-probability mean-reversion setups, and current market conditions have not produced candidates meeting these thresholds. This is a normal occurrence that reflects the system's commitment to quality over quantity.

Market Movements

Australian benchmarks like the ASX 300 edged higher on the final trading day, driven by strength in consumer staples and financials, while health care and industrials trailed. Week-to-date, materials led convincingly with outsized gains in mining stocks, followed by energy, contrasting with declines in utilities and information technology. What this means: The commodity-fueled rally signals renewed optimism in cyclical sectors, broadening market participation beyond defensives, though laggards may present selective opportunities if rotation persists.

Market Snapshot

Equities

1D WTD
S&P/ASX 300 +0.5% +2.1%
S&P/ASX 50 +0.4% +2.1%
Focus Index
ASX 300

Top Gainers (WTD)

1D WTD
Amcor Plc-Cdi (Xasx) -0.06% +415.0%
Catalyst Metals Limited +14.7% +24.5%
Light & Wonder, Inc. -0.3% +16.7%

Top Losers (WTD)

1D WTD
Novonix Limited -15.8% -24.8%
Mesoblast Limited -2.2% -14.0%
Zip Co Limited 0% -13.5%

Sectors (Equal-Weighted)

1D (%)
Consumer Staples
+1.4%
Financials
+1.2%
Real Estate
+1.0%
Consumer Discretionary
+1.0%
Information Technology
+0.7%
Communication Services
+0.6%
Materials
+0.6%
Energy
+0.4%
Utilities
+0.06%
Industrials
-0.3%
Health Care
-0.6%

Ranked by 1-day change

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Disclaimer: These insights are generated using AI and are provided for informational purposes only. They do not constitute financial advice or a recommendation to buy or sell any security. The content may be incomplete or contain errors and should not be relied upon for investment decisions. Always consult a qualified financial adviser before making financial choices.