Aussie shares dip as commodity prices drag miners lower
The Australian stock market is on track to erase two weeks of gains in two sessions as soft metal prices weigh on mining stocks.
The S&P/ASX200 index fell 53.2 points to 8,632.9 points at noon on Friday, down 53.2 percent, while the overall All Ordinaries index fell 53.4 points, or 0.6 percent, to 8,863.5 points.
The top 200 is down 1.1 percent since Monday following a sharp midweek rebound in mining stocks and continued weakness in the banking sector.
“The materials sector, which forms the backbone of the ASX200 this year, has been hit hard by the decline in metal prices,” IG market analyst Tony Sycamore said.
“Adding to the pessimism, concerns have also increased over the acceleration of iron ore exports from Guinea’s giant Simandou project, a development expected to weigh on Pilbara volumes.”
Iron ore futures fell to a 13-week low below $102 a tonne, while copper prices have fallen nearly four percent since reaching a near-record high on Tuesday.
Megaminers BHP, Rio Tinto and Fortescue were under pressure as the base materials sector fell by 1.9 per cent.
Gold stocks were also in a sea of red as the precious metal fell to US$4,445 ($6,226) an ounce, while battery minerals and rare earth producers also sold off.
The financial sector was also under pressure, falling 0.7 percent, as all four major banks traded lower, slowing economic growth, a cooling housing market and concerns about the federal government’s tax shake-up continued to weigh.
Energy stocks fell as Brent crude fell to $95.50 a barrel despite ongoing uncertainty over the Persian Gulf conflict, putting pressure on domestic fossil fuel producers.
The traditionally defensive consumer staples and healthcare sectors rose for a second day, led strongly by Woolworths, CSL and Pro Medicus.
ASX-listed technology shares rose as Megaport rose nine per cent after completing a $518 million equity raise as part of its AI push.
In other company news, Resolute Mining was one of the worst performers in the top 200, falling almost seven percent after its Syama project was affected by security and supply chain issues in Mali.
Shares in investment group Perpetual rose two per cent after it entered into a sales agreement to buy 70 per cent of asset services technology company Interfi Systems.
Insurer Nib gained 1.8 percent after selling its travel portfolio to Allianz for $50 million.
The Australian dollar was buying 71.19 US cents at 71.35 US cents at 5pm on Thursday.
