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In the first trading session of the week, the Australian sharemarket has experienced a downturn, primarily driven by declines in gold mining stocks.
The S&P/ASX 200 index has dropped by 0.6% to approximately 8041 points. In contrast, the S&P 500 ended the previous week on a positive note, bolstered by a late rally. This uptick was fueled by recent data suggesting a resilient US consumer, which could potentially impact the pace of future interest rate adjustments.
On the ASX, the consumer discretionary sector has been the weakest performer, largely due to a 1.9% decline in Wesfarmers Limited (ASX:WES).
Gold miners have faced significant pressure following a drop in gold prices over the weekend. Notable declines include Perseus Mining Limited (ASX:PRU) and Red 5 Limited (ASX:RED), both of which have fallen by over 5%.
Additionally, a decrease in the iron ore price, now nearing $US100 per tonne, has also affected major players in the sector. Key companies such as BHP Group Limited (ASX:BHP), Fortescue Metals Group Limited (ASX:FMG), and Rio Tinto Group (ASX:RIO) have shown modest declines.
Shares Under Observation
- Downer EDI Limited (ASX:DOW): The company has once again led the index with a 3.6% increase, reaching $5.79. This rise follows a 17% surge on Friday, driven by the company’s transition to an $82 million annual profit compared to a substantial $386 million net loss from the previous year, largely due to write-downs.
- Bellevue Gold Limited (ASX:BGL): Bellevue Gold has reported its first full-year profit, attributed to its WA mining project reaching production. Despite this achievement, shares have slipped 2.8% to $1.23, influenced by the recent downturn in gold prices.
- Imugene Limited (ASX:IMU): The company’s shares have soared by 22.6% to 7.6¢, following promising trial results for its cancer treatment. However, the company reported a net loss of approximately $150 million for the 2024 financial year.
- REA Group Limited (ASX:REA): Shares of REA Group have been suspended just before the commencement of trading. The online real estate platform has not disclosed the reason for this halt.
- Star Entertainment Group Limited (ASX:SGR): Trading of Star Entertainment shares has been suspended following the company's failure to release its full-year results last week. The casino operator is currently engaged in efforts to raise capital and address the fallout from a critical review of its operations.
As the week progresses, market participants will be keenly watching these developments, particularly the performance of gold miners and responses from major companies in the mining and consumer discretionary sectors.
