AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- ASX falls as mining and energy stocks decline following weak Chinese stimulus.
- Key stocks like BHP and Rio Tinto experience significant losses.
- Tech, real estate, and select companies show resilience despite market downturn.
The Australian share market faced a downturn on Monday as the S&P/ASX 200 index declined by 0.4 percent, dropping 36.3 points to settle at 8258.8. The retreat came as disappointing economic stimulus from Chinese authorities impacted the already pressured mining and energy sectors. This decline contrasted last week's 2.2 percent rally, which marked the strongest streak since mid-August, driven by positive momentum on Wall Street following the U.S. presidential election outcome.
Mining and energy stocks faced sharp declines, largely due to weaker iron ore and oil prices. Market giants BHP (ASX:BHP) and Rio Tinto (ASX:RIO) both lost close to 4 percent, with Fortescue (ASX:FMG) experiencing an even sharper 4.7 percent dip. South32 (ASX:S32) dropped by 3.2 percent, while energy stocks such as Woodside (ASX:WDS) and Santos (ASX:STO) also lost ground, falling by 0.5 percent and 1 percent, respectively. Expectations had built up around potential Chinese policy measures to boost demand for Australian commodities. However, China's less-than-anticipated economic stimulus measures led to a subdued outlook for the sector.
On a positive note, five sectors showed resilience. Gains in the technology and real estate sectors provided some relief to the market, balancing some losses in other areas.
In company-specific movements, Endeavour Group (ASX:EDV), the parent company of Dan Murphy’s and BWS, saw a significant 4.6 percent drop, reaching a new intraday low of $4.45. The company announced an expected decline in profit over the next six months due to steady store sales and increased promotional activities aimed at attracting customers.
In the materials sector, Liontown Resources (ASX:LTR) edged up by 0.2 percent after it revised its output plans and targeted up to $100 million in cost reductions as a response to weaker lithium prices. Similarly, logistics group Qube (ASX:QUB) gained 0.3 percent as it maintained its FY25 guidance, highlighting modest growth expectations.
Other notable moves included a 14 percent surge for battery technology provider Novonix (ASX:NVX) following a new supply agreement with automotive giant Stellantis, while gold miner Resolute Mining (ASX:RSG) faced a steep 27 percent drop after announcing the detention of its CEO in Mali due to local government inquiries.
Additional developments included Incitec (ASX:IPL), which rose 0.8 percent despite reporting a loss and reducing dividends, and Cleanspace (ASX:CSX), which fell 18 percent due to lower-than-anticipated revenue. Software company Iress (ASX:IRE) inched up 0.1 percent following the initiation of civil proceedings in Federal Court related to an existing agreement.
Meanwhile, New Zealand’s Fonterra Shareholders’ Fund (ASX:FSF) gained 2.5 percent after raising its milk price forecast for the 2024/25 season. Stockland (ASX:SGP) also advanced 1.8 percent after raising its FY25 per-share guidance, while LendLease (ASX:LLC) eased by 0.4 percent post-approval for selling development projects to Stockland.
