ASX Monthly Winners: ASX rises in volatile October as investors turn defensive

• The S&P/ASX 200 rose 1% in October but results were mixed, with the top end of market gaining and small caps falling 
• Defensive sectors outperformed with utilities leading gainers up 9%, followed by Financials rising 7% and Health Care up 6%
• Dalaroo Metals rose 86% in October on high-grade gold results from maiden drilling at its Wilfred target within the Bondoukou Gold Ridge project in Côte d’Ivoire

Ongoing geopolitical and economic tensions led to choppy trading for global markets throughout October, but the ASX overall still managed to stay in positive territory.

The S&P/ASX 200 gained 1% for the month, according to S&P Dow Jones Indices. However, it was anything but a smooth ride for investors, with gains concentrated at the top end of the market.

The S&P/ASX 100 gained 2%, while the S&P/ASX Small Ordinaries and S&P/ASX Emerging Companies declined 6% and 9%, respectively.

Big Tech earnings spook AI trade

Over on Wall Street, October delivered more tricks than treats in the lead-up to the midterms, with most major indices finishing the month in the red.

The Nasdaq slid 6.7% in October, for its worst monthly decline since March 2025, as megacap tech earnings sparked questions over whether the big bucks being invested in AI will bring adequate returns.

The S&P 500 shed 0.9%, while the Dow Jones managed to rise 1.7% as investment flowed out of tech and into more defensive sectors.

Meanwhile, the U.S. Federal Reserve held its benchmark interest rate steady at 3.75% to 4% (around 3.9%) at its October meeting, as it weighed the need for further data amid inflation remaining above its 2% target.

Inflation set to rise on Melbourne Cup Day

In Australia, the Melbourne Institute of Applied Economic and Social Research expects the Reserve Bank of Australia (RBA) to increase the cash rate by 25bps to 4.85% on Melbourne Cup Day, marking the fifth increase for 2026 and taking it to a level not seen since 2008.

September-quarter headline inflation came in at 1.3%, slightly above the 1.2% forecast of economists, taking annual inflation further above the RBA’s 2-3% target band.

The RBA’s preferred underlying measure also remained stubborn, rising 1% in the quarter and 3.6% over the year.

Adding to the concern, the latest monthly figures showed annual headline inflation accelerating to 4.3%.

“Inflation remains high. Both headline and underlying inflation have increased and are well above the top end of the target band. Inflation expectations have also risen in recent months,” said Associate Professor Sam Tsiaplias.

“The combination of higher inflation and elevated inflation expectations means the likelihood of a further rate increase is high.”

Meanwhile, Australia lost 39,300 jobs in September while unemployment rose to 4.7%.

“Unemployment remains relatively low by historical standards. In the short term, higher unemployment may be an inevitable and unfortunate consequence of higher rates,” Tsiaplias said.

“In addition, the cost-of-living effects of higher rates will not be evenly distributed. Mortgage-holders, for example, will disproportionately experience rising cost-of-living pressures, whereas individuals with significant deposits may benefit.

Tsiaplias said a key consideration was lowering inflation and managing inflation expectations without dragging down economic conditions and raising unemployment any more than warranted.

“A point of uncertainty is that much of the effects of raising interest rates will not be evident for a considerable number of months. Consequently, monetary policy must anticipate the future, which is inherently uncertain,” he said.

“Despite this uncertainty, waiting too long risks both higher inflation and entrenched higher inflation expectations. The latter can feed into consumer decision making, wage expectations and other key facets of the economy.”

He said with the prices of goods and services rising faster than the RBA wants them to rise, there were two key considerations.

“One is overseas pressures, such as the conflict in the Middle East pushing up fuel prices,” he said.

“The other consideration is domestic conditions. Although monetary policy has little direct influence on the former, it can influence inflation expectations, with research showing that inflation expectations reflect both overseas and domestic conditions.”

Melbourne Institute economists have not ruled out further interest rate rises, saying decisions will need to be guided by the latest monthly data.

Utilities lead gainers as materials and tech fall

Within the S&P/ASX 200, defensive sectors outperformed, with Utilities leading with a 9% gain, followed by Financials up 7% and Health Care continuing its recovery to rise 6%.

Materials and Information Technology were the only two sectors to finish in the red, falling 8% and 3%, respectively. Commodity performance was mixed with the S&P GSCI Crude Oil up 14% amid persistent supply disruption as tensions continue in the Middle East, while the S&P GSCI Gold declined 3%.

50 best-performing ASX stocks in October

CODE COMPANY LAST SHARE PRICE OCTOBER RETURN % MARKET CAP ALV Alvo Minerals 0.067 235% $22,650,344 DAL Dalaroo Metals 0.13 86% $52,450,651 RTH Ras Tech 1.015 85% $48,604,187 BKY Berkeley Energia Ltd 0.82 82% $365,960,377 NGX NGX Ltd 0.13 78% $11,779,539 FGH Foresta Group 0.013 63% $37,155,022 WRX Westridge Resources 0.06 62% $11,514,244 AOA Ausmon Resorces 0.0015 50% $2,028,920 EGY Energy Tech Ltd 0.03 50% $18,740,972 RLC Reedy Lagoon Corp 0.003 50% $6,650,120 CTD Corp Travel Limited 3.56 45% $494,615,442 AKG Academies Aus Grp 0.1 43% $12,761,447 ARN Aldoro Resources 0.335 40% $79,580,160 DM1 Desert Metals 0.009 38% $6,019,909 LGI LGI Ltd 2.65 38% $274,116,726 IOV Ion Video Ltd 0.55 38% $77,809,800 AVH Avita Medical 4.69 37% $325,029,335 CTT Cettire 0.32 36% $121,996,230 JAL Jameson Resources 0.049 36% $56,837,734 LIO Lion Energy Limited 0.016 33% $7,234,684 OSX Osteopore Limited 0.004 33% $2,774,372 ZMM Zimi Ltd 0.004 33% $4,599,348 MEI Meteoric Res Ltd 0.22 29% $640,260,383 PCG Pengana Capital 0.875 29% $84,791,757 SM1 Synlait Milk Ltd 0.43 28% $259,375,182 NXN Nexsen Limited 0.16 28% $14,842,575 GW1 Greenwing Resources 0.12 28% $63,080,566 DGR DGR Global Ltd 0.038 27% $39,660,447 LVE Love Group Global 0.12 26% $4,864,100 T88 Taiton Resources 0.054 26% $6,687,833 ABE Australian Bond Exchange 0.035 25% $5,686,916 CAN Cann Group Ltd 0.005 25% $8,302,968 SDR Siteminder 3.4 25% $962,488,548 M24 Mamba Exploration 0.056 24% $33,450,006 PPL Pureprofile Ltd 0.036 24% $43,549,196 MSV Mitchell Services 0.67 24% $142,341,855 SGR Star Entertainment Group 0.155 24% $1,045,028,594 LNQ LinQ Minerals 0.555 23% $51,245,684 ODA Orcoda Limited 0.059 23% $11,063,339 WZR Wisr Ltd 0.038 23% $66,993,335 VMS Venari Minerals 0.12 22% $20,170,996 FRM Farm Pride Foods 0.275 22% $63,401,304 TAL Talius Group Limited 0.055 22% $18,960,826 LPE Locality Planning 0.1 22% $18,262,444 PSC Prospect Res Ltd 0.255 21% $213,534,688 NTI Neurotech International 0.017 21% $27,473,189 PMM Pioneer Minerals 0.205 21% $15,353,686 AOK Australian Oil 0.003 20% $7,293,177 BPH BPH Energy Ltd 0.003 20% $4,061,547 FEL Forte Energy Ltd 0.006 20% $5,196,023

Alvo Minerals (ASX:ALV) was the top performer in October, surging 235% after reporting high-grade rare earths intercepts at its Bluebush project in Brazil.

Diamond drilling results included 19.5m at 1324ppm total rare earths oxide (TREO) from 1m, with wide-spaced auger drilling also confirming extensive mineralisation within the project area.

The company has since launched a maiden drill program at the Florence prospect in the southernmost area of the Bluebush tenure. Mineralisation is hosted in the Serra Dourada granite – the same geological setting as the neighbouring Serra Verde mine – which was acquired by USA Rare Earth in a US$2.8 billion deal in September.

Dalaroo Metals (ASX:DAL) climbed 86% in October, buoyed by high-grade gold results from its maiden reverse circulation drilling program at the Wilfred target within the Bondoukou Gold Ridge project in Côte d’Ivoire.

Results included 18m at 7.31g/t gold from 63m, including 12m at 8.66g/t, alongside a second 16m mineralised zone in the same hole. Dalaroo can earn up to an 80% interest in the project through its joint venture with Goldridge SARL.

NGX (ASX:NGX) was up 78% in October after securing the right to acquire up to an 85% interest in seven gold exploration licences covering more than 1300km² near WIA Gold’s 3.78-million-ounce Kokoseb deposit in Namibia.

NGX has also secured a nearby copper project and raised $3.6 million to fund exploration, with the next challenge being to establish its own gold discoveries.

Racing data and wagering technology company RAS Technology Holdings (ASX:RTH) rose after agreeing to a $49.8m takeover by UK-based The Press Association, which is offering $1.04 cash per share, a whopping 93% premium to its last closing price.

The board has unanimously backed the deal, which is expected to close in February 2027.

50 worst-performing ASX stocks in October

CODE COMPANY LAST SHARE PRICE OCTOBER RETURN % MARKET CAP HWK Hawk Resources 0.005 -84% $3,449,916 DXN DXN Limited 0.14 -75% $52,749,788 TOU Tlou Energy Ltd 0.001 -67% $1,298,584 ELS Elsight Ltd 1.81 -63% $409,121,511 RTR Rumble Res Limited 0.02 -62% $26,538,767 FTI Fortifai Ltd 0.28 -61% $97,009,231 KAO Kaoko Metals 0.82 -61% $36,804,392 BLZDB Blaze Minerals Ltd 0.008 -60% $2,970,000 VR8 Vanadium Resources 0.025 -59% $17,524,168 TER Terracom Ltd 0.034 -57% $61,965,787 EMU EMU NL 0.012 -54% $4,865,972 EBR EBR Systems 0.13 -54% $109,909,912 AMS Atomos 0.007 -50% $10,424,155 AS2 Askari Metals 0.004 -50% $3,475,382 GSE Gulf Stream Energy 0.002 -50% $4,935,880 HE8 Helios Energy Ltd 0.001 -50% $3,884,305 M2M Mt Malcolm Mines 0.004 -50% $3,173,867 PR2 Piche Resources 0.027 -50% $9,346,357 KRR King River Resources 0.04 -49% $63,783,481 OEQ Orion Equities 0.09 -49% $1,406,291 BRE Brazilian Rare Earth 1.875 -48% $517,788,218 SPL Starpharma Holdings 0.45 -48% $217,309,974 QUE Queste Communication 0.026 -48% $698,438 BVR Bellavista Resources 0.195 -47% $42,114,973 CQT Conneqt Health Ltd 0.008 -47% $8,131,261 LUX Lux Copper Corp 0.19 -46% $12,687,369 MGH Maas Group Holdings 3.86 -46% $1,254,321,479 AKN Auking Mining Ltd 0.01 -44% $24,202,586 BOT Botanix Pharma Ltd 0.01 -44% $27,626,711 SP3 Spectur Ltd 0.005 -44% $2,079,614 14D 1414 Degrees Limited 0.029 -44% $20,969,304 JNS Janus Electric Holdings 0.48 -44% $81,765,313 NYM Narryer Metals 0.045 -44% $9,506,466 SKS SKS Tech Group Ltd 6.03 -44% $696,134,984 ELV Elevra Lithium Ltd 3.19 -44% $618,911,133 VFY Vitrafy Life Science 2.27 -43% $141,517,527 1AD Adalta Limited 0.002 -43% $6,424,338 M96 Maverick Minerals Au 0.004 -43% $7,393,913 TR2 Tali Resources Ltd 0.19 -42% $9,276,897 BUX Buxton Resources Ltd 0.022 -42% $10,263,574 GCM GCM Corporation 0.055 -42% $10,624,631 PVT Pivotal Metals Ltd 0.011 -42% $14,466,050 AM7 Arcadia Minerals 0.037 -41% $4,898,187 POL Polymetals Resources 0.49 -41% $151,128,813 SLD Saluda Medical 0.245 -41% $61,745,833 PKY Pathkey.Ai Ltd 0.016 -41% $21,625,167 STK Strickland Metals 0.037 -40% $97,743,594 LDX Lumos Diagnostics 0.06 -40% $59,289,976 DBO Diablo Resources 0.009 -40% $4,869,657 ENV Enova Mining Limited 0.0015 -40% $3,416,414

This article does not constitute financial product advice. You should consider obtaining independent financial advice before making any financial decisions.

The post ASX Monthly Winners: ASX rises in volatile October as investors turn defensive appeared first on Stockhead.