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Highlights
- ASX falls with tech leading sector losses, while miners and energy stocks rise.
- Resolute Mining declines 5.5% on a $247M deal with Mali authorities.
- FleetPartners soars nearly 11% after exceeding FY24 earnings estimates.
The Australian share market experienced a downturn following Wall Street's sell-off, as the S&P/ASX 200 Index opened lower by 36.8 points, or 0.4%, at 8248.4 points on Monday. The market's dip followed last week’s 0.1% decline as enthusiasm for the so-called "Trump trades" waned and traders reconsidered Federal Reserve rate cut expectations. Despite the losses, gains in mining and energy sectors cushioned the impact.
Out of the eleven major sectors, seven recorded declines, with the technology sector leading the losses. Financials also weakened, with National Australia Bank (ASX:NAB) dropping 1.8%. The decline followed news that the Australian Securities and Investments Commission (ASIC) initiated legal action against the bank over alleged breaches of the National Credit Code between 2018 and 2023.
Mining and Energy Sectors See Mixed Results
Mining heavyweights showed resilience, as BHP Group (ASX:BHP) rose 0.5%, Rio Tinto (ASX:RIO) gained 1%, and Fortescue Metals (ASX:FMG) added 0.5%, despite pressure from falling iron ore prices. Energy stocks also performed well, with Whitehaven Coal (ASX:WHC) increasing by 1.4% and New Hope Corporation (ASX:NHC) climbing 2.9%.
Resolute Mining Declines Amid Mali Agreement
Shares in Resolute Mining (ASX:RSG) dropped 5.5% after the company agreed to pay $247 million (USD $160 million) to Mali’s government. The agreement is part of efforts to ensure the miner’s operational continuity in the country, following the detention of its CEO Terence Holohan and three other staff members.
Other Movers in the Market
Pharmaceuticals company Clinuvel (ASX:CUV) declined 1.3% as it redirected its focus to three strategic areas of business. Meanwhile, online luxury retailer Cettire (ASX:CTT) dropped over 5%, following a sell rating assigned by Citi. The stock has already halved in value this year due to concerns over its business model.
Jewelry retailer Lovisa (ASX:LOV) plunged more than 7% after a similar sell rating from Citi, downgrading its outlook from neutral. Life360 (ASX:360) also suffered, falling over 5% after CEO Chris Hulls reduced his stake by offloading more than 1% of his holdings.
On the upside, FleetPartners (ASX:FPR) surged nearly 11%, driven by FY24 earnings that exceeded market expectations. Agribusiness Elders (ASX:ELD) paused trading after announcing a $475 million acquisition of Delta Agribusiness in a mix of debt and equity, despite reporting a dip in statutory profit and dividend for FY24.
