ASX Slips Over 1% as Coles, Woolworths Decline; Banks Face Pressure

2 min read | March 05, 2025 02:55 PM AEDT | By Team Kalkine Media

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ASX Slips Over 1% as Coles, Woolworths Decline; Banks Face Pressure — Image source: shutterstock

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Highlights

ASX 200 declines over 1% as market tracks Wall Street losses.

Consumer staples and financials lead the downturn, with Coles (ASX:COL) and Woolworths (ASX:WOW) falling over 3%.

Mining sector shows resilience, buoyed by gains in Rio Tinto (ASX:RIO) and BHP (ASX:BH

The Australian stock market faced a sharp decline, with the ASX 200 index dropping over 1% by midday, reflecting concerns over escalating trade tensions and tracking losses from Wall Street overnight. A broad sell-off was observed across all 11 market sectors, with consumer staples and financials facing the biggest declines.

Consumer Staples Struggle as Coles and Woolworths Slide

The consumer staples sector recorded the largest decline, down 3.3%. Leading the drop were Coles (ASX:COL) and Woolworths (ASX:WOW), which fell 3.5% and 3.2%, respectively. Treasury Wine Estates (ASX:TWE) also slipped 4.4%, weighing further on the sector. Investor sentiment was dampened as the retail giants navigated concerns over inflationary pressures and supply chain disruptions.

Financial Sector Faces Selling Pressure

The financial sector declined by 2%, driven by weakness in major lenders. Westpac (ASX:WBC) and National Australia Bank (ASX:NAB) both dropped 1.7%, while Commonwealth Bank (ASX:CBA) and ANZ (ASX:ANZ) declined 1.5% and 1.3%, respectively. Insurance companies were not spared, with QBE (ASX:QBE) losing 2.8%, while Suncorp (ASX:SUN) and Insurance Group Australia (ASX:IAG) recorded slight declines. The financial sector faced additional headwinds from concerns over potential costs tied to Tropical Cyclone Alfred, which could impact insurers.

Mining Sector Shows Resilience Amid Global Concerns

Despite the broad market decline, the materials sector remained relatively stable, falling just 0.1%. Major mining players saw some recovery following recent weakness due to sliding iron ore prices. Rio Tinto (ASX:RIO) gained 0.8%, while BHP (ASX:BHP) edged 0.5% higher. Meanwhile, Fortescue (ASX:FMG) was down 0.5%. The mining sector found some relief as China set its 2025 economic growth target at 5%, fueling speculation about potential stimulus measures aimed at boosting demand.

Market Outlook

The market remains volatile amid global economic uncertainty. With renewed trade tensions and potential impacts from international policy shifts, investors continue to assess economic indicators for future direction. The performance of key sectors, particularly consumer staples and financials, will be closely monitored in the coming sessions.

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