ASX Slips Amid Property Decline; Pro Medicus and SG Fleet Shine

December 04, 2024 03:11 PM AEDT | By Team Kalkine Media

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ASX Slips Amid Property Decline; Pro Medicus and SG Fleet Shine — Image source: shutterstock

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Highlights

ASX dips as property and utilities stocks decline.

Pro Medicus (PME) and SG Fleet (SGF) gain after key announcements.

Rio Tinto (RIO) signs a joint venture for the Winu project.

Australian shares faced a downturn on Wednesday afternoon as weakness in property and utilities sectors weighed on the market. The benchmark S&P/ASX 200 Index dropped 0.5%, losing 38 points to reach 8457.2 by mid-afternoon. This decline followed a record close on Tuesday and a mixed performance on Wall Street overnight.

The property sector led the losses, with Goodman Group (ASX:GMG) sliding 3.4%. The fall came after a $1.9 billion block trade reportedly launched by Citi earlier. Other key real estate players also faced declines, including Scentre Group (ASX:SCG), which dropped 1.9%, and Stockland (ASX:SGP), down 1.8%.

Utilities stocks were another drag on the market. APA Group (ASX:APA) dipped 3.3%, while Origin Energy (ASX:ORG) slipped 1%.

On the global front, the S&P 500 reached its 55th record high this year, supported by gains in tech-heavy Nasdaq, driven by Apple’s extended rally. Meanwhile, local data showed that Australia’s GDP grew 0.3% in the third quarter, falling short of market expectations of 0.4%. This weaker-than-expected growth caused the Australian dollar to decline by 1%, trading around US64¢.

Adding to regional turbulence, South Korea faced market instability following President Yoon Suk Yeol’s declaration of martial law. Although the decree was later rescinded, investor sentiment remained cautious.

Key Performers and Developments

Pro Medicus (ASX:PME) rose 3% after its founders, Dr. Sam Hupert and Anthony Hall, confirmed they would not be selling further shares in the foreseeable future. Around 2 million shares in the medical imaging software company were traded in Tuesday’s post-session activity, following approaches from institutional investors.

SG Fleet (ASX:SGF) also gained 3%, following Pacific Equity Partners’ agreement to acquire the vehicle leasing company. The deal, valued at $1.4 billion, is the largest public-to-private acquisition announced this year.

In the mining sector, Rio Tinto (ASX:RIO) partnered with Japan’s Sumitomo Metal Mining (SMM) to advance the Winu copper-gold project in Western Australia. SMM secured a 30% stake in the project for $614 million, with Rio shares edging 0.7% higher on the news.

Despite the broader market dip, select stocks showed resilience and optimism amid sector-specific news and deals.

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