ASX Dips as James Hardie Merger Spurs Volatility and Trade Tariff Jitters Linger

March 23, 2025 06:00 AM PDT | By Team Kalkine Media

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ASX Dips as James Hardie Merger Spurs Volatility and Trade Tariff Jitters Linger — Image source: shutterstock

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Highlights

ASX opens the week lower amid global trade uncertainty

James Hardie (ASX:JHX) drops sharply after merger announcement

Mixed movements across major stocks reflect cautious sentiment

Australia’s sharemarket began the trading week on a cautious note, dipping as global uncertainties around US trade tariffs resurfaced and corporate activity spurred sharp stock-specific movements.

The S&P/ASX 200 declined by 0.3 per cent or 23.9 points to 7907.3 within the first 45 minutes of trading. The All Ordinaries Index also slipped by 0.3 per cent, reflecting the overall subdued investor sentiment.

A major weight on the index came from James Hardie Industries (ASX:JHX), which sank 9.3 per cent in early trade. The company announced an $US8.8 billion ($14 billion) merger with US-based AZEK, structured as a cash and stock deal. Under the agreement, AZEK shareholders will receive $US56.88 per share in a combination of cash and equity and will own around 26 per cent of the merged entity, which will be listed on the New York Stock Exchange.

Investor caution was also shaped by ongoing concerns over US trade policy. Former President Donald Trump’s recent comments hinting at flexibility on his proposed reciprocal tariffs, due for announcement on April 2, gave only limited optimism to global markets. Despite a brief lift in sentiment, the S&P 500 in the US closed just 0.1 per cent higher on Friday.

Back in Australia, profit-taking hit a range of index heavyweights. BHP (ASX:BHP) eased 1.3 per cent, while Computershare (ASX:CPU) fell 2.2 per cent. In the consumer space, both Woolworths (ASX:WOW) and Coles (ASX:COL) declined by 0.9 per cent, following a strong finish to last week after the ACCC cleared the supermarket giants of price-gouging allegations.

Among the few gainers, Commonwealth Bank (ASX:CBA) edged up by 0.8 per cent, standing out amid broader weakness.

Elsewhere, Helia Group (ASX:HLI) plunged 27.9 per cent after flagging uncertainty around the future of its mortgage insurance contract with Commonwealth Bank, set to expire at the end of the year.

Synlait Milk (ASX:SM1) dropped 13.7 per cent despite returning to profitability, as concerns lingered around long-term demand sustainability and cost structures.

Transport services provider Kelsian Group (ASX:KLS) moved 1.3 per cent higher after starting discussions with Transport NSW to extend its public bus services in Sydney’s inner west.

Lastly, South32 (ASX:S32) fell 2.7 per cent following allegations from an engineering and logistics partner, claiming misuse of proprietary information during a past contract engagement.

The start of the week suggests investors are treading carefully amid both global trade developments and domestic corporate updates, keeping market momentum in check.

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