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Perth Now
9 hours ago
- Business
- Perth Now
Major miners drag the ASX200 down
A sell-off in the major iron ore and gold miners weighed on the ASX 200 on Wednesday, as investors bide their time and await the fallout from the Israel-Iran conflict. The benchmark ASX 200 index fell 10.1 points or 0.12 per cent to 8,531.2 on a day investors largely stayed on the sidelines. The broader All Ordinaries also slipped 13.20 points or 0.15 per cent to 8,757.90. The Australian dollar traded marginally higher up 0.37 per cent to buy 65.03 US cents. On a day of low trading volume, eight of the 11 sectors finished up, despite the overall market falling. Overall 104 stocks ending in the red, 86 gaining and 10 remaining unchanged. But this was not enough to lift the overall market, with a slump in material, utilities and A-REITs offsetting gains in the information technology and healthcare sectors. The major miners slumped dragging the ASX 200 lower. Picture Newswire/ Gaye Gerard. Credit: News Corp Australia Materials slumped 1.56 per cent on the day with the price of iron ore falling to $US93 a tonne amid sluggish growth forecasts out of China and US steel tariffs. BHP shares fell 1.18 per cent to $36.86, Fortescue slumped 4.02 per cent to $15.03 and Rio Tinto fell 1.07 per cent to $106.00. Citi Group has cut its iron ore price forecasts, predicting $US90 a tonne for both the next three months and the next 6–12 months. ANZ senior commodity strategist Daniel Hynes said a combination of low demand and high supply was seeing the price of the commodity fall. 'The rainy season has slowed construction activity in southern China. In the north, high temperatures are contributing to a slowdown,' he said. 'Beijing's efforts to curb overcapacity in the steel industry looks to be playing out, with China's steel production falling 6.9 per cent in May.' Gold miners were also a drag on the ASX, with the price of the underlying commodity also dropping. Northern Star Resources is down 1.95 per cent to $20.58, Evolution Mining slipped 3.55 per cent to $8.15 and Genesis Mineral slumped 3.00 per cent to $4.53. Despite the ASX falling on Wednesday more stocks finished in the green. NewsWire / Max Mason-Hubers Credit: News Corp Australia It was a mixed day for the big four banks with CBA gaining 0.58 per cent to $180.19 and Westpac eked out a small gain up 0.03 per cent to $33.02. NAB slipped 0.23 per cent to $38.71 and ANZ finished in the red down 1.43 per cent to $29.04. Investors remained on the sidelines, with the ASX now only swinging 59 points or 0.70 per cent during the last two and half days of trading until 2.30pm. IG market analyst Tony Sycamore said the average range on the ASX over the past nine weeks has been 165 points or almost 2 per cent. 'This suggests there is room for some fireworks/movement into the week's end as the spring winds become increasingly tighter,' he wrote in a note. In company news, shares in Cettire have rallied 10.5 per cent to $0.32, but comes after shares slumped 31 per cent in a single trading day last week on a less than favourable trading update. Shares in uranium producer Boss Energy rose 4.3 per cent to $4.66 after announcing its operations in South Australia have met its first-year production guidance.
Perth Now
a day ago
- Business
- Perth Now
ASX flat as Middle East conflict escalates
Nervous investors continued to watch the fallout from the escalating conflict between Israel and Iran, leading to a cautious trading day on the Australian share market on Tuesday. The benchmark ASX 200 index practically traded flat, losing just 7.10 points or 0.08 per cent to close at 8,541.30. The broader All Ordinaries also slipped 3.90 points or 0.04 per cent to 8,771.10. The Aussie dollar is trading near US65.31c. Initially markets jumped on the opening bell before the Australian market dragged lower in line with US and Europe futures as US President Donald Trump urged people to leave the Iran capital of Tehran. The ASX falls as Trump warns 'they should have taken the deal. Picture Newswire/ Gaye Gerard. Credit: News Corp Australia Mr Trump issued the chilling warning to everyone in Tehran to 'immediately evacuate' in a post made on his social media platform Truth Social. 'Iran should have signed the 'deal' I told them to sign. What a shame, and waste of human life,' Mr Trump wrote. Futures markets in the US slid, with the Dow Jones Industrial Average dropping 0.32 per cent, while the S & P 500 futures dropped 0.34 per cent, and the tech heavy Nasdaq 100 futures dipped nearly 0.4 per cent. On the local bourse, seven of the 11 sectors finished in the red paring back some of the early gains. Gold miners were the bright spot on the market for a second day running with Northern Star Resources gaining 1.50 per cent to $20.99, Newmont Corporation added 2.49 per cent to $89.29 and Gold Road Resources finished up 0.60 per cent to $3.38. On the other hand, the market heavyweight financial sector dragged on the market. Commonwealth Bank fell 0.15 per cent to $179.14, NAB slipped 0.36 per cent to $38.80, Westpac slumped 0.54 per cent to $33.01 and ANZ finished in the red down 0.47 per cent to $29.46. The major iron ore miners had a mixed day as the price of the commodity traded flat at $US95.23 per tonne. Seven of the 11 sectors fell during Tuesday's trading. NewsWire / Max Mason-Hubers Credit: News Corp Australia BHP fell 0.37 per cent to $37.30 and Fortescue Metals slumped 0.38 per cent to $15.66. Bucking the trend was Rio Tinto which eked out a tiny 0.04 per cent gain to close at $107.15. AMP chief economist and head of investment strategy Shane Oliver said the market was following its usual process with history showing falls of around 6 per cent during times of geopolitical uncertainty, before rallying by 15 per cent in the corresponding 12 months. 'The Israel/Iran war along with tariff uncertainty poses a high risk of a renewed set back in share markets, if the conflict escalates to the point that it threatens oil supplies from the Middle East,' Dr Oliver said. 'It should also be remembered that conflicts regularly flare up in the Middle East only to settle down, so the key is not to get too negative and look for any opportunities that the conflict throws up.' In corporate news Santos continued its climb higher adding another 0.5 per cent of $7.80 after soaring more than 11 per cent on Monday after announcing an almost $30bn takeover bid.
Perth Now
20-05-2025
- Business
- Perth Now
ASX gains on surprising RBA tone
The Australian sharemarket rose during Tuesday's rating after the Reserve Bank of Australia reduced interest rates to their lowest levels since May 2023. The benchmark ASX 200 index finished 48.20 points or 0.58 per cent higher to 8,343.30. The broader All Ordinaries also rose, up 48.60 points or 0.57 per cent to 8,573.40. The Australian dollar fell on the back of the RBA's rate cut and is now buying 64.18 US cents. Australia's sharemarket extended its early jump after the RBA cut the official cash rate by 25 basis points to 3.85 per cent, moving rates back below the 4 per cent mark for the first time since 2023. ASX jumps after the RBA confirms rate cuts. Picture Newswire/ Gaye Gerard. Credit: News Corp Australia While this was widely tipped by markets and economists alike, the RBA governor Michele Bullock said the decision was 'unanimous' while leaving the door open for further rate cuts, citing a promising inflation outlook. 'Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance,' the Board said in its 2.30pm statement. This helped lift eight of the 11 sectors into the green, with information technology, property and telecommunications sectors leading the way. Technology One soared 11.33 per cent to $36.76 while Xero Limited rose 0.46 per cent and WiseTech Global jumped $2.68 per cent to $102.07. Stocklands shares also rose 0.73 per cent to $5.55, while The GPT Group is up 0.85 per cent to $4.72 and Mirvac Group rose 1.78 per cent to $2.29. The major banks also all finished in green. CBA continued its momentum, trading 0.62 per cent higher to $172.43, NAB jumped 1.00 per cent to $37.21, ANZ is up 1.27 per cent to $28.76, Westpac closed 0.41 per cent higher to $31.50 and Macquarie Group climbed 2.01 per cent to $208.09. senior financial market analyst Kyle Rodda said the RBA cut was expected by the market was buoyed by the surprising dovish commentary and forecasts. Eight of the 11 sectors finished in the green Picture Newswire/ Gaye Gerard. Credit: News Corp Australia 'Global uncertainty was written all over the central bank's Statement on Monetary Policy, with growth and inflation forecasts lowered and forecasts for the unemployment rate lifted,' he said. 'Governor Bullock also stated the board tabled a 50 basis point cut at this meeting. 'While slightly ominous for the Australian growth outlook, the news boosted market sentiment, with the cut to trimmed mean inflation forecasts from 2.7 to 2.6 per cent all but signalling the RBA thinks it's close to calling mission accomplished on inflation.' AMP economist Shane Oliver said he now expects the board to cut interest rates three more times by early next year. 'We continue to see further rate cuts ahead as we see economic growth picking up more slowly than the RBA is forecasting, monetary policy remains tight and annual underlying inflation is close to being back at the midpoint of the target range earlier than the RBA was previously expecting,' he wrote in an economic update. In company news Telstra shares rose 2.2 per cent to $4.66 after announcing it was lifting the majority of its NBN and postpaid mobile plans by between $3 to $5. On the flip side, shares in Kogan were among the most heavily traded after the company announced a fall in profitability for its New Zealand business Mighty Ape. Shares fell 8.9 per cent to $4.12 on the announcement.
Perth Now
09-05-2025
- Business
- Perth Now
ASX rallies ahead of trade talks
Investors continued to bid up the Australian sharemarket on Friday, on the back of hope the two biggest economies could agree to a trade deal. The benchmark ASX 200 index closed up Friday, gaining 39.50 points or 0.48 per cent to 8,231.20. This locked in a minor fall of 0.08 per cent for the week's trading. The All Ords closed up Friday, gaining 40.90 points or 0.49 per cent to 8,462.60 and setting a new 20-day high. The Australian dollar is now buying 64.03 US cents. The ASX as a whole rose, but investors were less enthused about the iron ore miners. Picture Newswire/ Gaye Gerard. Credit: News Corp Australia On an overall strong day for the market, nine of the 11 sectors closed Friday in the green, including index heavyweights financials and consumer staples. Leading the banking sector was Macquarie Group, which surged 3.79 per cent to $203.31 after it reported a 5 per cent jump in net profits. Macquarie reported a net profit of $3.72 billion for the 12 months, beating market forecasts. CBA continued its march higher up 0.92 per cent to $167.04, while Westpac surged 2.33 per cent to $31.21 and NAB rose 0.44 per cent to $36.53. The one outlier was ANZ which dropped a further 1.43 per cent to $28.98 after releasing its half yearly results on Thursday. The market heavyweight delivered a record $11bn revenue haul but its net interest margin, a key measure of profitability, slipped to 1.56 per cent. Consumer staples also helped drag the market higher on the back of the two major supermarkets. Woolworths shares were up 1.31 per cent to $33.26 while Coles closed 0.85 per cent higher at $22.48. Endeavour Group jumped 1.45 per cent to $4.19 while Treasury Wine Estates is up 0.67 per cent to $9.02. Australia's market continued to rally on Friday after a number of countries announced tariff reduction talks with the United States. On an overall strong day for the market, nine of the 11 sectors finished in the green. NNewsWire / Jeremy Piper Credit: News Corp Australia The UK was the first to agree to a trade deal, where it will buy $US10bn worth of Boeing planes, although it will still face the 10 per cent base level tariff rates. It also follows earlier news of trade talks with India, South Korea and Japan were also in the pipeline. VanEck senior portfolio manager Cameron McCormack said the most important trade deal could still be to come. 'The most significant development, however, could occur in a matter of days, with US Treasury Secretary Scott Bessent reported to be meeting senior Chinese officials in Geneva over the weekend,' Mr McCormack said. 'Clarity on the US-China trade relationship will be a substantial relief valve for the global economy.' 'China's economic recovery is particularly important for Australia, given its prominence as our largest trading partner.' There was mixed news for Australia's commodities despite the initial trade talks. Energy shares rallied as a whole 0.85 per cent, with Woodside Energy advancing 1.44 per cent to $20.40, and Santos up 1 per cent to $6.06 on the back of higher oil prices. But a lift in iron futures did not help the major miners, with BHP down 1 per cent to $37.54, Rio Tinto sliding 0.95 per cent to $114.98 and Fortescue Metals, sliding 0.13 per cent to $15.96. Capital .com senior financial market analyst Kyle Rodda said overall the markets sentiment could be changing. 'In a possible leading indicator of further upside in stocks and generally greater risk appetite, Bitcoin cracked $100,000 again overnight, bringing the crypto to within touching distance of record highs,' Mr Rodda said. In company news, Nine Entertainment gained 6 per cent to $1.58 after agreeing to sell Domain to Costar. News Corp jumped 4.83 per cent to $53.13 on a strong earnings report. The company announced revenues for the quarter came in at $2.01 billion, up 1 per cent on the prior corresponding period.
Perth Now
06-05-2025
- Business
- Perth Now
ASX drags during late trading
Australia's sharemarket closed marginally lower on sea-sawing Tuesday as health care and banking stocks offset broader market gains. The benchmark ASX 200 index closed slightly lower down 6.40 points or 0.08 per cent to close at 8,151.40. The broader All Ordinaries also slipped, down 4.70 points or 0.06 per cent to 8,369.30. The Australian dollar slid 0.03 per cent to 64.58 US cents. While the market overall fell, seven of the 11 sectors finished in the green, although index heavyweights the banks and healthcare dragged the ASX down. A bright stock was energy shares which bounced following a sell-off on Monday after OPEC+ announced it was ramping up supply in June, which saw the price of Brent Crude Oil traded briefly below $US60 a barrel. Seven of the 11 sectors finished in the green. Picture Newswire/ Gaye Gerard. Credit: News Corp Australia Santos shares were up 0.68 per cent to $5.88, Woodside Energy traded marginally higher up 0.35 per cent to $19.94 while Ampol jumped 3.48 per cent to $24.95. All four big banks closed lower, with the financials index down 0.42 per cent at market close. Australia's largest bank CBA slipped 0.1 per cent to $166.74, NAB dropped 1.5 per cent to $35.30, ANZ was 0.73 per cent lower to $29.84 and Westpac lost a further 1.97 per cent to $31.81 after Monday's disappointing results. IG market analyst Tony Sycamore said Westpac's half yearly continued to hamper the financial sector. 'Following Westpac's underwhelming first-half 2025 earnings report, which has sparked renewed debate on valuations, and ahead of NAB's update tomorrow, major banks have extended their decline,' Mr Sycamore said. Westpac on Monday announced the bank's core interest margin, a key metric of profitability, fell by 3 basis points on the back of tighter loan spreads, on the back of competition in lending. Healthcare also finished in the red, down 1.86 per cent on the back of US President Donald Trump signing an executive order to incentivise prescription drug manufacturing in the United States. The order comes ahead of Mr Trump's plans to place a tariff on pharmaceutical goods going into America. Healthcare stocks fell on the latest Trump announcement. Picture Newswire/ Gaye Gerard. Credit: News Corp Australia Biotech giant CSL saw its share price fall by 2.47 per cent to $250.47, Telix Pharmaceuticals lost 3.84 per cent to $28.04, and Ramsay Health Care declined by 2.38 per cent to $34.10. Despite the sell off in healthcare stocks, Mr Sycamore said the overall ASX moved within the smallest trading range in eight weeks. 'The quiet session follows a subdued and low-volume day on Wall Street, where the market's winning streak ended as ongoing trade tensions overshadowed strong economic data ahead of the Federal Reserve's interest rate meeting on Thursday morning,' he says. In company news TAB was one of the strongest performing shares on the market soaring 9.65 per cent to $0.62 after telling investors 'tab is getting fitter' having increased its wagering and media capabilities. Poultry supplier Inghams shares jumped 1.72 per cent to $3.55 despite the company reaffirmed its FY 25 guidance of volume growth between negative 1 and 3 per cent. Freight rail transport company Aurizon announced cost cutting measures, including approximately 200 full time equivalent roles being reduced, subject to a consultation currently in-progress. Shares fell 3.23 per cent to $3 during Tuesday's session.
