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Highlights:
The asx 200 eased lower, with gains in gold and defensives offset by broad weakness in energy and materials
Washington H Soul Pattinson (ASX:SOL) and Brickworks (ASX:BKW) advanced following confirmation of a corporate merger
Lithium shares declined after lower EV forecasts and a downgrade by a major investment bank
The asx 200 edged lower in a quiet session, reflecting weakness across energy and materials sectors. The benchmark index finished near session lows while the All Ordinaries and Small Ordinaries also recorded modest losses. The All Tech index underperformed, and the Emerging Companies index saw similar softness.
The defensive tone was evident as Communication Services, Industrials and Consumer Staples recorded small gains. Real Estate, Consumer Discretionary, and Information Technology finished marginally lower.
Energy and Materials Lead Losses
Energy stocks were among the weakest performers. Shares of Woodside Energy Group Ltd (ASX:WDS) and Karoon Energy Ltd (ASX:KAR) declined following news of a planned production hike by OPEC+ starting July. This development, despite a rise in oil prices, contributed to cautious sentiment in the sector.
Materials shares also came under pressure. BHP Group Ltd (ASX:BHP), Fortescue Ltd (ASX:FMG) and Rio Tinto Ltd (ASX:RIO) all closed lower as iron ore futures traded weaker. This coincided with a lack of positive catalysts and macro uncertainty around China’s commodity demand.
Strength in Gold Miners
Gold producers outperformed as prices for the metal advanced. Evolution Mining Ltd (ASX:EVN), Regis Resources Ltd (ASX:RRL), and Ramelius Resources Ltd (ASX:RMS) rallied, with each reaching new highs over the past year. Support came from heightened geopolitical concerns and tariff-related developments out of the United States, which supported demand for safe-haven assets.
Lithium Stocks Slide Further
Lithium producers continued to decline, extending their recent downtrend. Pilbara Minerals Ltd (ASX:PLS) dropped to its lowest level in over two years. IGO Ltd (ASX:IGO) and Liontown Resources Ltd (ASX:LTR) also fell, following a revision of long-term demand estimates and commodity price forecasts. These moves followed a downgrade in stock ratings by a global investment bank.
Corporate Merger Lifts SOL and BKW
Washington H Soul Pattinson (ASX:SOL) and Brickworks Ltd (ASX:BKW) led the market on the upside after confirming plans to merge. The transaction was well received due to its simplification of cross-holdings and expectations around improved capital structure.
The merger positions the new entity among the larger names on the local market, with possible inclusion into broader equity indices. This factor may have contributed to institutional flows, particularly from passive funds and index-aligned portfolios.
Economic Data – Labour Market Update
The ANZ-Indeed job ads index reported a decline for the month of May. This followed a revised decrease in April, placing the reading at its lowest since early twenty twenty-one.
Despite a tight labour market and strong employment growth in April, recent trends suggest a softening in overall demand. Hours worked remained flat, with mixed signals across hiring metrics. Economic analysts continue to monitor these developments in the context of monetary policy outlooks.
