AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- ASX declines as mining, gold, and energy stocks see significant losses.
- Paladin Energy faces a sharp decline following reduced production guidance.
- Block experiences a strong rally amid gains in its US-listed shares.
The Australian S&P/ASX 200 Index is experiencing a downturn, with the index falling by 47 points or 0.6% by midday, extending a previous 0.4% drop. The slump largely reflects declining performance in mining, gold, and energy stocks, with various companies facing considerable losses.
The mining sector is down by approximately 2%, led by significant declines in prominent names. For instance, BHP Group (ASX:BHP) is down by 2.1%, trading at $40.77 following a 1.7% dip in global iron ore prices to around $100 USD per tonne. Additionally, ASX-listed gold miners have faced notable setbacks, including West African Resources (ASX:WAF), Emerald Resources (ASX:EMR), and Bellevue Gold (ASX:BGL), each seeing a drop of over 5%. The decline in gold stocks follows a 2.3% drop in spot gold prices to $2,622.62 USD per ounce as investors took profits after a previous rally.
Energy stocks have also recorded a 1% dip, mainly due to weakening oil prices and declining coal stock values. This sector's slump reflects broader trends, as "Trump trades" – which include robust gains in sectors like technology and cryptocurrency – have maintained momentum since the recent US election. For example, Tesla saw an impressive 7% surge, while bitcoin jumped by 9.5%, reaching approximately $88,000 USD in early Asian trading.
Among individual companies, Liontown Resources (ASX:LTR) defied the overall downward trend, rising by 3.6% to 87¢. Despite the company receiving a “sell” rating from analysts at Citi, Liontown’s position as a lithium developer provided support amid global interest in battery materials.
In contrast, uranium miner Paladin Energy (ASX:PDN) experienced a sharp decline of 24.3%, dropping to $7.32. The company reduced its production forecast, attributing the change to operational issues at its Langer Heinrich mine in Namibia. The reduction in guidance has impacted Paladin’s stock significantly, making it one of the worst performers on the index.
Meanwhile, Block (ASX:SQ2), the parent company of Afterpay, saw its shares rise by 10.6% to $126.14. The surge followed gains in Block's US-listed shares, supported by a positive analyst note from Piper Sandler. This rally marked one of the few positive movements on the ASX.
Coles Group (ASX:COL) faced a slight decline of 0.6% to $17.64, as its chairman commented on the impact of inflation on the company, stating that the cost-of-living pressures have been politicized in relation to supermarket operations.
