Market Slips as Mining and Energy Sectors Lead Losses on ASX

November 11, 2024 11:06 AM AEDT | By Team Kalkine Media

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Market Slips as Mining and Energy Sectors Lead Losses on ASX — Image source: shutterstock

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Highlights

ASX falls as mining and energy sectors see declines following China's modest stimulus package.

BHP, Rio Tinto, and Fortescue experience notable drops in value.

Gains in technology and real estate sectors provide some balance to the market.

The ASX began the week with a slide, dropping shortly after opening on Monday. This decline was largely driven by weaknesses in mining and energy stocks after the latest economic stimulus package from China failed to meet market expectations. The S&P/ASX 200 index dropped 0.4% or 32.8 points, settling at 8262.3, after experiencing a 2.2% rally the previous week — the best winning streak since mid-August, following a strong performance on Wall Street post-election results in the United States.

Out of the ASX’s 11 industry sectors, seven sectors managed to stay positive, with notable gains in technology and real estate helping to counterbalance some of the losses. However, the influence of heavyweight mining and energy stocks weighed heavily on the overall market performance.

Among the mining giants, BHP Group (ASX:BHP) and Rio Tinto (ASX:RIO) recorded declines of 3%, while Fortescue Metals Group (ASX:FMG) saw a larger drop of 4.6%. Other key players in the sector, such as South32 (ASX:S32), fell by 1.7%, with Woodside Energy (ASX:WDS) and Santos Ltd. (ASX:STO) experiencing declines of 0.7% and 0.6%, respectively.

In other sectors, the Fonterra Shareholders’ Fund (ASX:FSF) from New Zealand raised the midpoint forecast for its 2024/25 farmgate milk price to $NZ9.50 per kilogram milk solid, pushing its shares up by 2%. Meanwhile, Stockland Corporation Ltd. (ASX:SGP) upgraded its FY25 funds per share guidance, resulting in a 0.8% rise in its stock price.

Liontown Resources (ASX:LTR) provided updates on its unit operating costs for the second half of FY25, aiming to target higher-margin ore to counter the effects of lower lithium prices. This led to a modest 1.2% gain in its share price.

Retail stocks had a mixed day, with Endeavour Group (ASX:EDV), the parent company of Dan Murphy’s and BWS, dropping 5.6% due to a warning about softer sales and margin pressures influenced by inflation.

In corporate updates, Iress Ltd. (ASX:IRE) experienced a 0.5% uptick following the news of civil proceedings launched against it by ESSSuper in the Federal Court. Qube Holdings Ltd. (ASX:QUB) reaffirmed its FY25 guidance, reporting modest growth and lifting its share price by 1%. Battery technology company Novonix Ltd. (ASX:NVX) surged 15% after announcing a supply agreement with the automotive company Stellantis.

Finally, gold miner Resolute Mining (ASX:RSG) experienced a steep 26% decline as CEO Terry Holohan was detained by Mali's military government. Meanwhile, Incitec Pivot (ASX:IPL) shares rose by 1.6%, despite reporting a loss and cutting dividends, showing resilience in an otherwise volatile market.

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