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Highlights
- Financial and consumer discretionary sectors see modest strength
- James Hardie (JHX) slides after merger announcement
- Helia (HLI) plunges on contract uncertainty with major bank
The Australian sharemarket experienced a choppy session on Monday, with the S&P/ASX 200 Index briefly touching positive territory before slipping into the red. By 2:21pm, the benchmark index had declined 3.3 points or 0.04 per cent to 7927.9. The broader All Ordinaries was also down by 7 points, reflecting a cautious sentiment across the bourse.
Only three of the index’s eleven sectors traded higher during the session, with gains in financial and consumer discretionary sectors standing out as bright spots. In contrast, the broader market faced headwinds, led by sharp losses in key names and a backdrop of global uncertainty.
A major drag on the index came from building materials giant James Hardie (ASX:JHX), which fell 12.9 per cent following the announcement of its merger with NYSE-listed AZEK in a deal valued at $US8.8 billion (approximately $14 billion). Under the terms, AZEK shareholders will own around 26 per cent of the merged entity, a move that sparked a wave of selling pressure on James Hardie shares.
Investors remained cautious amid looming geopolitical risks, particularly as markets brace for the next round of US tariffs on trade partners scheduled for April 2. While a brief uptick in US equities was seen last Friday following signals of flexibility on these tariffs, the S&P 500 closed with only marginal gains.
Elsewhere, toll road operator Transurban (ASX:TCL) dropped 2.9 per cent, while Computershare (ASX:CPU) declined 1.9 per cent. Retail majors Woolworths (ASX:WOW) and Coles (ASX:COL) also faced selling pressure, falling 1.1 per cent and 1.6 per cent respectively, following recent gains sparked by an ACCC report into supermarket competition.
In the green, financial heavyweights such as Commonwealth Bank (ASX:CBA) and Westpac (ASX:WBC) saw gains of 1.1 per cent and 1.3 per cent respectively. Consumer-focused names also showed resilience, with Wesfarmers (ASX:WES) rising 1.2 per cent and Aristocrat Leisure (ASX:ALL) climbing 1.4 per cent.
Helia (ASX:HLI) was among the most notable movers, plunging 26.2 per cent after revealing that its mortgage insurance contract with Commonwealth Bank may not be extended beyond year-end, as the bank explores other insurers.
On the resource front, Mineral Resources (ASX:MIN) rose 4.5 per cent after restarting operations on its Onslow Iron haul road, which had been halted due to a series of truck incidents. Fortescue (ASX:FMG) also advanced 1.9 per cent following a more optimistic outlook for iron ore.
However, Synlait Milk (ASX:SM1) tumbled 8.2 per cent despite reporting a 105 per cent rise in profit to $4.8 million, as investors appeared underwhelmed by the overall result. South32 (ASX:S32) declined 1.7 per cent, with recent gains prompting a reassessment of its valuation amid commodity price risks.
