Mining Stocks Struggle While Tech and Energy Stocks Show Positive Momentum in Australia

3 min read | January 23, 2025 12:19 PM AEDT | By Team Kalkine Media

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Mining Stocks Struggle While Tech and Energy Stocks Show Positive Momentum in Australia — Image source: shutterstock

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Highlights

Mining stocks face a decline due to weaker commodity prices, impacting the ASX.

Santos (ASX:STO) and other energy stocks report stronger-than-expected results.

Tech companies like Netwealth (ASX:NWL) and Myer (ASX:MYR) show promising growth prospects.

Australian shares opened lower on Thursday, largely driven by a drop in mining stocks after commodity prices slipped. Despite a positive lead from Wall Street, the local stock market fell by 0.3%, or 27.1 points, with seven out of the 11 sectors on the ASX (S&P/ASX 200 Index) starting the day in negative territory.

Iron ore prices fell significantly after a two-day rally, coming in at $US103.85 per tonne. As a result, miners were affected by the weaker commodity prices. BHP (ASX:BHP), one of Australia’s largest miners, saw its shares drop 1.1%, while Rio Tinto (ASX:RIO) slid 0.8%. Fortescue Metals Group (ASX:FMG) also posted a decline, falling by 0.5% despite a positive quarterly update. Investors are clearly concerned about external pressures such as President Trump’s tariffs on both China and the European Union, which continue to weigh on commodities.

In contrast to the mining sector, the technology and energy stocks showed resilience in the market. Santos (ASX:STO) saw its stock rise by 1.3%, with quarterly revenue climbing to $US1.4 billion ($2.2 billion), 10% higher than the previous quarter. The company benefited from robust energy demand and solid performance across its portfolio.

The real estate sector also felt the strain, with companies in this space dropping by 1.4% due to inflation concerns under the Trump administration. The Goodman Group (ASX:GMG) faced a 2.2% fall, while Scentre Group (ASX:SCG) dropped 1.1%.

Tech and wealth management stocks had a strong performance. Netwealth (ASX:NWL) surged by 2% after posting a record net inflow in the December quarter. Similarly, Insignia (ASX:ILF) gained 1.6%, as Bain Capital enhanced its offer for the wealth manager, making its proposal more competitive.

Additionally, Myer (ASX:MYR) saw a slight increase of 1.9% following the confirmation of its upcoming merger with a portfolio of brands owned by Solomon Lew’s Premier Investments. Peregrine Gold (ASX:PGE) saw a notable 3.5% rise after announcing the sale of a West Australian gold project to Capricorn Metals (ASX:CMM), a deal worth both equity and cash.

While the broader market faces headwinds, some sectors and companies are benefiting from their own strong results and forward momentum.

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