To The Moon

As of the close on Friday, $S&P/ASX 200(XJO.AU)$ closed at 8,757.20 on Friday, up 2.06% in the past 5 days.

The ASX 200 hit a record high on Friday, boosted by growing expectations of further rate cuts by the Reserve Bank of Australia due to signs of economic weakness. The index reached 8,776.4 points, with banks and mining stocks leading the gains.

This rally followed a weak June jobs report showing stagnant growth and a rise in unemployment, which added to expectations of rate cuts. The RBA has already reduced the benchmark rate by 50 basis points to 3.85% this year amid falling inflation.

1. $Infratil(IFT.AU)$ +6.86%

• Infratil was announced as a replacement for $SPARTAN RESOURCES LIMITED(SPR.AU)$ in the S&P/ASX 200 Index, effective July 23, driving investor demand ahead of passive fund rebalancing.

• The company benefited from positive sentiment around AI-driven data center demand, following AirTrunk’s $23.5B sale and Infratil’s own $1B+ funding plan for expansion.

• As a diversified infrastructure investor, Infratil gained traction amid market volatility, with its stable assets attracting defensive positioning.

2.$CSL LIMITED(CSL.AU)$ +6.83%

• CSL surged after reports revealed plans to cut ~1/3 of its global R&D workforce , aiming to streamline operations and boost efficiency through external partnerships, which investors viewed positively for margin improvement.

• Analysts from Morgans and others labeled CSL "materially undervalued," citing a current EV/EBIT of 18.2x (25% below its 10-year average), with a consensus 12-month price target of A$308.82 implying ~24% upside potential.

• As a healthcare blue-chip, CSL benefited from rotational buying amid market volatility, with its stable revenue streams attracting defensive investors seeking shelter from tariff-related uncertainties .

3. $Block Inc(XYZ.AU)$ +5.87%

• Block reported better-than-expected Q2 earnings, with gross profit up 9% YoY and adjusted EBITDA rising 15%, prompting bullish analyst upgrades and a raised price target.

• Bitcoin’s climb past $123K fueled optimism around Block’s Cash App growth, with analysts citing strong BTC-Cash App user engagement correlation.

• The company saw a surge in call options trading , indicating strong investor confidence in further upside.

• Block’s plans to unveil 100+ new AI-driven features and its FDIC approval for Square Financial Services boosted optimism about future revenue streams.

4. $XERO LTD(XRO.AU)$ +4.12%

• ASX 200 hit a record high amid expectations of RBA rate cuts, boosting tech stocks like Xero.

• Global tech rebound (especially AI-related stocks) lifted investor confidence in SaaS companies. Xero, Australia's largest cloud accounting software provider, is benefiting from this trend.

5. $TECHNOLOGY ONE LTD(TNE.AU)$ +3.93%

• The ASX 200 hit record highs amid RBA rate-cut bets, lifting tech stocks like TNE as investors sought stable growth amid macroeconomic uncertainty.

• UBS maintained a Buy rating with a $42.20 target, citing undervaluation despite Bell Potter’s downgrade, reflecting mixed but optimistic market views.