ASX Rebounds on Middle East De-Escalation. Commodities Stage a Recovery

Paper Mandate Market & Portfolio Commentary | 12 June 2026

Fund Status:

• Bal Start: $1,133,588

• Bought PC2

• Sold: None

• Bal End: $1,147,809

• Cash: $115,284

Overnight Markets

Markets rebounded overnight in a complete reversal. Technology (+2.94%), Industrials (+3.25%), and Discretionary (+2.39%) led the market while Energy (-2.06%) and Staples (-0.47%) fell. Oil and Gold are doing their dance. This time it’s oil turn to fall. The market is hotly anticipating the SpaceX IPO. The shares are 4 times oversubscribed according to Bloomberg. However, this IPO presents a problem; Nasdaq changed its rules around admitting companies into its Index. Under the old rules, companies had to be listed for 3 months (now only 15 days) and the free float minimum had to be 10% (SpaceX is 3%). So every man and his dog will be forced to buy a very overvalued, overhyped, illiquid stock through broad market index ETFs. The S&P500, thankfully, did not change its rules to accommodate SpaceX. ASX futures are up at the end of the US session.

Australian Market

The ASX 200 staged an amazing rally to end the week. Following the news overnight, it ignited a risk-on rotation into Materials (+4.06%) and Consumer Discretionary (+2.05%). Lithium players like Liontown Resources (+9.8%) and Pilbara Minerals (+9.8%) led the charge alongside other base metal miners. Gold had a reversal, gaining +5.7%. Erasing the losing streak as gold prices bounced back to US$4,200/oz.

Portfolio Commentary

The portfolio gained +1.25%, trailing the ASX 300 +1.98%. The portfolio gains came from a big +9.47% breakout from ZIP and a +8.82% gain in Ora Banda Mining, following the gold price rally. C79 also benefited from the gold price recovery, +4.38%. Construction services SHA and SRG caught a bid, advancing +2.53% and +2.43% respectively. However, the portfolio’s performance was diluted by the allocations to HMC Capital and Generation Development, both falling -2.37% and -2.05%, respectively.

Investment Activity

Disclaimer: This is a paper portfolio. Content is for educational purposes only and does not constitute financial advice. Always do your own research.