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The Australian share market experienced a decline in afternoon trade, with losses in the banking and tech sectors offset by a strong performance from lithium producers.
As of 2:17 PM, the benchmark S&P/ASX 200 was down 24.8 points, or 0.3%, trading at 7,987.1. Seven of the eleven sectors on the index were in the red, despite a tech rally in New York lifting the Nasdaq and S&P 500 overnight.
Banks Fall from Record Highs
Australian banks have pulled back from recent record levels, with Commonwealth Bank of Australia (ASX:CBA) leading the decline, down 1.9%. Other major banks, including Australia and New Zealand Banking Group (ASX:ANZ), National Australia Bank (ASX:NAB), and Westpac Banking Corp (ASX:WBC), also experienced declines of a similar magnitude.
Tech Stocks Slump
Tech stocks were also under pressure. Data centre operator NextDC Ltd (ASX:NXT) fell 6.9% to $16.61 following a $550 million capital raise to fund the purchase of new development sites in Asia. Other notable tech losses included WiseTech Global Ltd (ASX:WTC), down 1%, and Xero Ltd (ASX:XRO), which dropped 1.2%.
Energy Sector Down as Oil Prices Fall
The energy sector faced challenges due to weaker oil prices, with Brent crude futures dipping below $US70 per barrel for the first time in more than two years. Concerns over demand, oversupply, and speculative selling contributed to the decline. The sector was down 1.8% overall.
Mining Stocks Gain
Mining stocks provided some relief for the market, with BHP Group Ltd (ASX:BHP) rising 1.4% and Fortescue Metals Group Ltd (ASX:FMG) up 2.5%, driven by higher iron ore prices. Futures in Singapore saw iron ore prices climb back above $US92 per tonne.
Lithium Stocks Surge
Lithium stocks led the market gains, with Pilbara Minerals Ltd (ASX:PLS) and Liontown Resources Ltd (ASX:LTR) both up 14%. Reports of Chinese EV battery maker CATL suspending two lepidolite mines fueled the rally. Mineral Resources Ltd (ASX:MIN) saw a significant jump, rising 17%, following the Australian Foreign Investment Review Board’s approval of the sale of a 49% stake in its Onslow Iron haul road.
Other Stocks on the Move
REA Group Ltd (ASX:REA) saw a 3% decline to $196.19 after its acquisition bid for UK-based Rightmove Plc was rejected. The offer, worth approximately $11 billion in cash and shares, faced its first major obstacle with this rejection.
In the energy and infrastructure space, Infratil Ltd (ASX:IFT) rose 1.5% to $11.25, after backing a plan to sell Manawa Energy to New Zealand’s Contact Energy in a deal valued at $1.7 billion.
Meanwhile, Newmont Corporation (NYSE:NEM) announced an agreement to divest its majority stake in the Telfer mine in Western Australia and other assets to Greatland Gold Plc (LON:GGP), with shares up 0.9%.
This performance update highlights the fluctuating nature of the market, with gains in lithium and mining stocks balancing losses in the banking, tech, and energy sectors.
