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Highlights
- ASX200 closed down 0.35% at 8,176 points.
- Iron ore prices fell as China shifted focus from construction to consumer confidence.
- Health Care sector gained 0.75%, while Materials dropped 1.75%.
The ASX200 index closed 0.35% lower at 8,176 points, influenced by a drop in iron ore prices and a shift in China's economic strategy. Iron ore prices in Singapore declined from US$114 per tonne to US$108 per tonne after the Chinese government signaled a focus on boosting consumer confidence rather than driving new construction. This shift surprised the market, leading to a $5 drop in iron ore prices within thirty-five minutes.
On the ASX, the Health Care sector led gains with a 0.75% increase, followed by a 0.29% rise in Utilities. However, Materials posted the biggest loss, falling 1.75%, alongside declines in IT and Energy, which dropped 1.07% and 0.9%, respectively.
Stocks in the Green
Regenerative medicine company Orthocell (ASX:OCC) saw a strong gain of 7.29% after receiving regulatory approval from the Health Sciences Authority in Singapore to begin sales of its nerve repair product, Remplir. This marks the first international approval for the product outside of Australia and New Zealand. Orthocell closed the session at 51.5 cents.
TMK Energy (ASX:TMK), an energy explorer based in Mongolia, rose during intraday trade after launching a new drilling campaign at its Mongolian gas project located in the Gobi desert. The stock ended the day at $0.002.
AI-based defense technology company Droneshield (ASX:DRO) gained 1.13% following the announcement of a $13.5 million contract with the U.S. government for its proprietary counter-drone systems. Droneshield closed at $1.34.
Stocks in the Red
TechnologyOne (ASX:TNE) dropped 2.4% after being downgraded to neutral by Goldman Sachs, although the firm raised its price target to $24.05. TechnologyOne closed slightly below this target, finishing the day at $24.01.
Elixir Energy (ASX:EXR) experienced a sharp decline, closing down 58.79%, following lower-than-expected gas flow rates from its Daydream-2 well. Although five of the six zones are producing gas, the flow rates disappointed market expectations. Elixir Energy closed at 6.8 cents.
Akora Resources (ASX:AKO) ended the day down 3.57%, despite news that Madagascar’s mining minister expressed support for the company's Bekisopa iron ore project. Akora Resources closed at 13.5 cents.
The ASX200's dip was driven by sectoral movements, with iron ore prices reacting swiftly to China's economic policy shift. Gains in health care and utilities were offset by losses in materials, IT, and energy sectors.
