ASX falls as Perpetual plummets, while mining stocks surge

The news: The Australian sharemarket ended lower, dragged down by tech stocks, while mining and energy shares jumped following China’s latest stimulus pledge.

The benchmark ASX 200 fell 0.36% to end at 8,393, with eight out of 11 sectors finishing in red.

Biggest movers:

• Perpetual (-8.4%) — Its tax bill estimate has substantially increased after advice from the tax office on its proposed sale of its wealth management and corporate trust arm to KKR.
• IT sector (-4.04%) — The selloff followed a tech stock retreat on Wall Street driven by Nvidia as China’s market regulator launched an investigation into the company over suspected violation of antimonopoly law. Megaport (-5.35%), Life360 (-5.24%) and Technology One (-3.27%) were worst hit by the sell-off, while tech-driven healthcare provider Pro Medicus (-8.96%) was the worst performing ASX 200 stock.
• Materials sector (3.04%) — Iron ore miners and lithium miners soared after China promised to step up support for its beleaguered economy through an easier monetary policy in 2025. BHP (3.06%), Rio Tinto (4.85%), Fortescue Metals (6.23%) and Mineral Resources (8.69%), Pilbara Minerals (6.51%) and IGO (2.42%) all rallied.

Other news:

• IAG (-1.73%) — Announced that it will defend a policyholder class action in the Supreme Court of Victoria, served by law firm Slater and Gordon, against its subsidiary Insurance Australia Limited.
• Integral Diagnostics (1.03%), Capitol Health (2.7%) — The competition regulator has announced that it will not oppose Integral Diagnostics' proposed merger with Capitol Health after accepting a court-enforceable undertaking.
• GQG (2.26%) — Shares rallied despite a spate of analysts revising down their price targets on the investment manager.
• Treasury Wine (4%) — Has acquired a 75% stake in Ningxia Stone & Moon Winery in northwestern China to support the local production of its Penfolds portfolio.