ASX finishes lower as miners gain, healthcare and financial stocks decline
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The news: The Australian sharemarket finished slightly lower after trading higher in the morning, with gains by the miners — and lithium stocks in particular — offsetting losses in the healthcare and finance sectors.
The benchmark ASX 200 edged 0.03% lower to close at 8538.9, with four of the 11 sectors finishing in the green.
Biggest movers:
- Lithium miners – Minerals Resources (+14.8%) led gains on the ASX 200 after US President Donald Trump waived constraints relating to national security emergency powers in a move that could boost Australian industries. Pilbara Minerals (+12.5%), IGO (+9.6%), and Liontown Resources (+5.7%) also posted big gains.
- IDP Education (-6.4%) – The global education and student support services provider was the biggest loser in the ASX 200, two days on from massively downgrading its earnings guidance amid constraints on international students in key markets like Australia and the US.
- Health sector (-0.8%) – The worst performing industry with losses driven by CSL (-1.3%), Sigma Healthcare (-0.3%) and Pro Medicus (-0.9%).
- Australia’s largest miners, BHP (+0.1%), Fortescue (+1.5%) and Rio Tinto (+0.3%), all finished higher. Among Australia's four largest banks, Commonwealth (+0.1%) and Westpac (+0.5%) closed higher, while NAB (-0.2%) and ANZ (-0.03%) finished lower.
Deals updates:
- Mayne Pharma (+9.4%) – The drug company is pushing ahead with its shareholder vote on US-based Cosette Pharmaceuticals' proposed $672 million acquisition deal despite its suitor issuing a termination notice on Wednesday.
- Catapult (-1%) – The sports technology company has acquired MIT spinoff Perch for $28 million with cash and stock.
Executive moves:
- EMVision Medical Devices (+0.6%) – The portable brain scanner manufacturer appointed Ramsay Health Care CEO Carmel Monaghan to its board.
- Tyro Payments (-10.4%) – Chief executive and managing director Jon Davey has resigned to join a private equity backed company.
Other news:
- IperionX (+28.8%) – The titanium alloy manufacturer has secured a $US99 million ($152.5 million) US defence contract.
- Lynas Rare Earths (+12.5%) – Was boosted by news that China’s rare earths export controls were leading to auto part production line suspensions in Europe.
- Clarity Pharma (+12%) – Released results from its phase two 'DISCO' trial which the company said confirmed its imaging agent Cu-SARTATE is "safe and highly effective" at detecting lesions in patients with neuroendocrine tumours (NET).
- Maas Group Holdings (+5.4%) – Reaffirmed its full-year guidance during an investor presentation.
- Toys R Us – Toys R Us has entered voluntary administration, appointing BDO Business Restructuring about five years after the brand was relaunched as an online store. The stock has been suspended from quotation.
- Austal (-0.7%) – Financial advisory firm Bell Potter raised its price target for shares of the shipbuilding company in anticipation of strong full-year result but downgraded the stock on valuation grounds.
- Pacific Current Group (-4.9%) – The boutique asset manager acknowledged a short report regarding Abacus Global Management, a US life insurance company it holds shares in.
What’s ahead:
- The European Central Bank will make its latest interest rate decision tonight at 10:15pm.
- The US Department of Labor will release weekly data on unemployment claims tonight at 10:30pm.
- The Australian Bureau of Statistics will release data on building approvals, the labor account and the number and prevalence of multiple job holders at 11:30am tomorrow.
