AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- ASX slips, weighed down by mining and energy sectors.
- Key players like ASX:BHP and ASX:RIO face declines amid commodity pressures.
- Battery tech and asset management sectors see gains despite market dip.
The Australian sharemarket experienced a downturn, with the S&P/ASX 200 index dropping by 0.5% (38.1 points) to 8,257. This decline reflects the ongoing impact of China's recent stimulus measures, which fell short of market expectations, impacting mining and energy sectors that rely heavily on Chinese demand.
Iron ore and oil prices dropped after China's announcement late Friday, where minimal stimulus measures were revealed. This disappointed markets hoping for stronger action to support China’s slowing economy and bolster demand for Australian exports. Leading mining giants such as BHP Group (ASX:BHP) and Rio Tinto (ASX:RIO) felt the effects, each seeing a nearly 4% drop. Fortescue Metals Group also declined by 5.8%, while South32 lost 2.4%. Energy stocks mirrored the trend, with Beach Energy dipping by 1.4% and Ampol down by 0.8%.
In the financial sector, major banks faced a similar trend. Commonwealth Bank reached a record high early in the session, only to reverse gains and close 0.2% lower.
Retail conglomerate Endeavour Group (parent company of Dan Murphy’s and BWS) was among the most significant decliners. Its shares fell 4.8% after the company warned of a likely profit decrease for the last six months of the year due to flat sales across its outlets. This led Endeavour to reach an intraday record low of $4.45.
The property and technology sectors provided some relief, offsetting declines in other areas. HMC Capital was the top gainer on the index, surging 4% as it announced plans to launch a $4 billion data center investment trust on the ASX by the year's end. Meanwhile, battery tech company Novonix saw its shares soar by 14% following a supply agreement with automotive giant Stellantis.
Gold mining company Resolute Mining experienced a sharp drop, plummeting 33% after news that its CEO, Terry Holohan, had been detained by Mali's military-led government. Additionally, respiratory equipment manufacturer Cleanspace saw an 18% fall due to lower-than-expected revenue.
New Zealand’s Fonterra Shareholders’ Fund rose by 3.1% after increasing its projected milk price for the 2024-25 season. In property, Stockland Group posted a 1.9% increase after upgrading its FY25 funds from operations per share guidance from 33¢ to 34¢.
This mixed performance across sectors highlights the sensitivity of the Australian market to global economic developments and the shifting dynamics within specific industries.
