ASX200 Slips Amid Banking Weakness While Orica (ASX:ORI) Soars on Restructuring Momentum

May 08, 2025 11:32 AM AEST | By Team Kalkine Media

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ASX200 Slips Amid Banking Weakness While Orica (ASX:ORI) Soars on Restructuring Momentum — Image source: shutterstock

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Highlights

ASX200 dipped amid global rate concerns and weak banking performance

Defensive sectors showed resilience on cautious Fed stance

Orica (ASX:ORI) surged after Latin America restructuring update

The Australian share market opened slightly lower, tracking overnight weakness from Wall Street following cautious commentary from the US Federal Reserve. The S&P/ASX 200 edged down by 0.2%, or 11.7 points, to 8166.6 during early trade, with losses concentrated in financial and mining sectors. The broader All Ordinaries Index dipped 0.1%.

Investors globally reacted to Federal Reserve Chair Jerome Powell’s latest statements, in which he emphasized heightened uncertainty in the economic outlook, including risks to inflation and employment. Although interest rates were held steady, Powell's remarks signaled a cautious stance moving forward, pressuring risk assets and sending the US dollar higher.

Amid the broader market weakness, traditionally defensive sectors on the ASX200—such as utilities, consumer staples, and communications—managed to post modest gains. Supermarket chain Coles (ASX:COL) climbed 1.1%, while power provider AGL Energy (ASX:AGL) advanced 1.3%.

Meanwhile, the major banks saw notable declines. ANZ Group (ASX:ANZ) slipped 1.9% after announcing a flat first-half profit result. Westpac (ASX:WBC) also retreated 1.3%, contributing to the drag on the financial sector.

Materials stocks were also under pressure as iron ore prices fell below US$98 per tonne. BHP Group (ASX:BHP) shed 0.8% following renewed trade tensions between the US and China. US President Donald Trump’s reluctance to adjust steep tariffs on Chinese imports dampened sentiment around resource stocks.

Among standout performers, Orica (ASX:ORI) surged 8.2% despite reporting a statutory net loss of $89 million. The sharp move came after the company disclosed a $308.3 million impairment related to its Latin American operations, along with restructuring efforts that appeared to resonate positively with market participants.

Infrastructure operator Transurban (ASX:TCL) rose 1.3% following an announcement that it plans to streamline operations by reducing its workforce by around 300 employees.

In other corporate news, Generation Development Group (ASX:GDG) advanced 3.5% after revealing a new strategic collaboration to co-develop retirement products alongside BlackRock. Meanwhile, Light & Wonder (ASX:LNW) tumbled 12% as it flagged cost pressures linked to US trade policy.

Mexican-style fast food group Guzman y Gomez (ASX:GYG) eased 1.5%, despite forecasting stronger full-year earnings and an expansion plan involving 31 new restaurant openings.

As the market navigates shifting global dynamics and local corporate updates, some investors are also keeping a close watch on reliable ASX dividend stocks as a way to balance growth with steady income. For broader market insights, the ASX200 continues to be a key reference point for tracking Australia's top listed companies.

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