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Market Wrap

ASX closes lower in wake of rates hold, prospective US tariffs

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The news: The Australian stock market finished lower as the real estate sector led broad losses after the Reserve Bank of Australia surprised the market on Tuesday by leaving the cash rate unchanged.

The benchmark ASX 200 fell 0.61% to end at 8538.6 with seven out of the 11 sectors finishing in the red.

The real estate sector was the worst performing, with the 13 biggest companies in the index all posting losses. This included Goodman Group (-2.6%), Scentre Group (-0.8%), Stockland (-1.5%) and Vicinity Centres (+0.4%).

Copper miners also took share price hits after US President Donald Trump announced intentions to impose a 50% tariff on the metal.

Evolution Mining (-7%), which has gold and copper interests, Sandfire Resources (-3.5%) and Capstone Copper (-3%) saw big declines whereas diversified miners BHP (-1%) and Rio Tinto (-0.6%) posted smaller losses.

Biggest movers:

  • Lifestyle Communities (-37.2%) – UBS analysts cut their price target on the retirement property developer after the Victorian Civil and Administrative Tribunal (VCAT) ruled on Tuesday that deferred management fees (DMF) it was charging some residents were void. It was the worst performing stock on the ASX 200.
  • Telix Pharmaceuticals (+5.6%) – The best performing stock on the ASX 200 after announcing it had passed a milestone for inclusion in a US patient reimbursement scheme.
  • Gold miners – Tracked losses in the spot price of gold as haven-demand ebbed after Trump delayed the start date of its global tariff regime. Evolution Mining (-7%) was the worst performing followed by West African Resources (-6.6%) and Regis Resources (-5.7%).
  • Big Banks – Commonwealth Bank (-0.2%) and ANZ (-0.5%) finished lower while NAB (+0.03%) and Westpac (+0.7%) finished higher.

Other news:

  • Orica (+2.9%) – Boral's outgoing chief executive Vik Bansal has been appointed as an Orica non-executive director and the company’s chair elect.
  • GQG Partners (-0.5%) – The fund manager reported 2% growth in funds under management in June and recorded monthly net inflows of USD0.7 billion ($1.1 billion).
  • CSL (-0.9%) – Finished lower after Trump said he intends to levy a 200% tariff on pharmaceuticals.
  • Bega Group (-1.5%) – Following the completion of a year-long review, struggling subsidiary peanut processing business Peanut Company of Australia will be shut down over the next 18 months.
  • Capricorn Metals (-4%) – Entered a binding agreement to buy the prospective Claw gold project from BPM Minerals for a cash and scrip consideration of $1.5 million.
  • A2 Milk (-4.1%) – Citi analysts said they are "incrementally more cautious" on the dairy company's near term outlook as they downgraded their position on the stock to 'neutral'.
  • West African Resources (-6.6%) – Reported a drop in gold production during the June quarter, although the company said it remains on track to achieve its annual guidance.

What’s ahead:

  • The US Federal Reserves will release the Federal Open Market Committee’s latest meeting minutes tomorrow at 4am.
  • The Australian Bureau of Statistics will release data on monthly business turnover for May tomorrow at 11:30am.

By Brandon How