ASX falls as energy, gold drag
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The news: The Australian sharemarket fell as the energy sector dragged on news of Israeli ceasefire talks while gold miners fell following Donald Trump’s announcement of plans to introduce tariffs on China, Mexico and Canada.
The benchmark ASX 200 dropped 0.69% to end at 8,359.4, despite six out of 11 sectors finishing in green.
Biggest movers:
- Gold miners — Bullion prices tumbled as the US dollar rose following Trump’s tariff announcement. Vault Minerals (-4.41%), Emerald Resources (-3.5%) and Westgold Resources (-3.48%) were the worst hit gold stocks.
- Energy sector — The worst performing sector, down 3.13%, after a sharp drop in benchmark oil prices, with Israel set to discuss a US-mediated ceasefire deal with Hezbollah. Karoon Energy (-4.36%), Beach Energy (-4.25%), Santos (-4.23%), and Woodside Energy (-3.79%) all fell.
- BlueScope Steel (5.55%) — Its share price jumped following the tariff announcement. During Trump's previous administration it received a pass on tariffs, and tariffs on Chinese exports are expected to improve its bottom line.
Other news:
- ASX (-4.3%) — Flagged that it will cost up to $320 million to implement its CHESS system by 2029.
- Newmont (-0.54%) — Has sold its Éléonore gold mine in northern Quebec, Canada, for $1.2 billion to UK-based miner Dhilmar.
- Novonix (shares halted) — Announced a $50 million equity raising to fund equipment for its upcoming Riverside manufacturing facility in the US.
- PolyNovo (0.98%) — Morgans analysts said the company’s current share price weakness was a buying opportunity for investors.
- WiseTech (1.38%) — Morgan Stanley analysts sharply lifted their price target on the company’s shares citing increased penetration of its software in the global freight forwarding industry.
Earnings:
- Webjet Group (-0.6%) — Posted a fall in bookings during its first reporting period since splitting from Webjet and listing as a standalone company on the ASX.
- Brickworks (0.04%) — Warned of subdued demand persisting for the next 12 months after a drop in first quarter revenue in both the Australian and North America markets.
- Regis Healthcare (1.24%) — Announced that it is tracking "modestly ahead" of its internal profit target at the start of the new financial year, boosted by new government funding reforms.
- Ramsay Health Care (3.47%) — Flagged that it has seen a positive start to FY25 but the growth rate is expected to be lower than the last financial year.
The Australian dollar is buying 64.92 US cents. It dropped as low as US 64.37 cents following the tariff announcement as the US dollar rallied.
What’s ahead: Wednesday’s events include:
- Economic: Monthly CPI figures released by the Australian Bureau of Statistics.
- AGMs: Lynas Rare Earths, Dubber, Harvey Norman, HMC Capital, NRW Holdings, Liontown Resources and Weebit Nano.
