AUS
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CA
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Highlights
- The S&P/ASX 200 Index declined after reaching a record high.
- Energy and tech stocks led the losses on the ASX.
- Gold miners gained as prices surged due to safe-haven demand.
The Australian stock market saw a downturn on Wednesday, with the S&P/ASX 200 Index closing 0.6% lower at 8326.3. This dip followed a record high achieved on Tuesday, as traders locked in gains from earlier advances. Energy and tech sectors were among the worst performers, while gold miners offered some resilience amid heightened geopolitical uncertainties.
Energy stocks declined by 1% despite stable oil prices. Renewed concerns over the Russia-Ukraine conflict added to market volatility. Overnight, Ukraine utilized advanced long-range missiles to strike a Russian military base, leading to a stern response from Moscow. The Russian government reiterated its stance on nuclear weapon use in retaliation against such actions.
Gold prices surged for the third consecutive session, climbing above $2630 an ounce—a record high. This safe-haven demand supported Australian gold miners, with West African Resources (ASX:WAF) advancing 2.4% to $1.50, and Evolution Mining (ASX:EVN) gaining 1% to close at $4.95.
In corporate developments, Amcor (ASX:AMC) slipped 1.2% to $15.51 after announcing its acquisition of Berry Group, a New York-listed packaging company, in a deal valued at approximately $13 billion. The move aims to enhance Amcor's global packaging footprint.
PWR Holdings (ASX:PWH), an automotive cooling parts supplier, faced significant pressure, tumbling 24.6% to $6.85 after forecasting a decline in its profit for the first half of FY25. The company cited challenges in meeting the $10 million profit mark recorded during the previous corresponding period.
Furniture retailer Nick Scali (ASX:NCK) faced headwinds, declining 1.7% to $13.84. The company warned of potential risks to its guidance after a key freight forwarder fell into liquidation, impacting operations.
Conversely, uranium developer NexGen Energy (ASX:NXE) surged 5.9% to $12.90 after receiving a critical permit from Canadian regulators, bolstering its progress in uranium development projects.
Healius (ASX:HLS) rebounded 2.3% to $1.34, breaking a three-session losing streak. The company recovered following an upgrade to a neutral rating by analysts, despite recent concerns over potential lab closures due to funding cuts.
The mixed market performance underscores the ongoing impact of geopolitical risks and sector-specific challenges on the Australian share market.
