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Highlights
- ASX falls 1.1% as US market gains slow after a five-day rally.
- Mining, gaming, and banking stocks lead losses on the ASX.
- Sector-specific setbacks impact Mineral Resources, Light & Wonder, and Commonwealth Bank.
The Australian stock market opened lower following a pause in the recent rally of global equities, reflecting similar trends on Wall Street. The S&P/ASX 200 Index has dropped 1.1% (91 points) to reach 8164 points, mirroring the overnight pullback in the US market, where the S&P 500 experienced its most significant five-day gain in a year. This pause in momentum follows renewed market uncertainty.
Commodity prices showed mixed performance. Gold continued to decline, trading below $US2600 ($4130) per ounce, while oil saw a modest rise, and iron ore prices held steady. Bitcoin hovered around $US89,000. Meanwhile, the US 10-year Treasury yield rose by 13 basis points to 4.44%, reflecting heightened interest rate concerns.
Mining stocks have been the hardest hit, with a 1.3% drop. The sector has now seen a cumulative 4.4% loss over the last five days, partly due to disappointing stimulus measures from China and potential trade tensions under incoming US administration changes.
Key Stock Movements
Mineral Resources (ASX:MIN) reported a 6.6% fall to $35.18 after announcing a temporary halt at its Bald Hill lithium site in Western Australia. The company attributed this decision to the continued weakness in spodumene prices, impacting the lithium market. As part of this shift, around 300 employees will either be reassigned to other locations or offered redundancy packages.
Gaming company Light & Wonder (ASX:LNW) dropped 5.9% to $149.63, despite a 15% increase in gaming revenue, reaching $US537 million for the quarter ending in September. This growth was driven by strong sales in global gaming machines, which rose 38%. However, earnings per share missed market expectations, putting downward pressure on the stock.
In contrast, competitor Aristocrat Leisure (ASX:ALL) posted a 17% rise in net profit, totaling $1.45 billion in FY24, buoyed by impressive performance in North America. The company also anticipates continued profit growth due to expanding market share and revenues within its Aristocrat Gaming division.
Commonwealth Bank (ASX:CBA) is down 1%, echoing losses across the banking sector. CEO Matt Comyn noted that Australia’s economic growth remains slow, as the bank reported a net profit of approximately $2.5 billion in Q1 of FY25.
Building materials giant James Hardie (ASX:JHX) experienced a 3.6% increase in share price, reaching $52.07, despite a challenging demand environment in Asia and Europe. The company’s net profit fell by 23%, yet it reaffirmed its lower-end volume guidance.
Life360 (ASX:360), which produces family tracking apps, cited strong demand for its new safety “Tiles” product but saw a 2.4% dip to $23.61. Wealth management firm Insignia Financial (ASX:IFL) is also down by 4.5%, reaching $3.18, as it rolls out a new efficiency strategy for the company.
