ASX retreats as iron ore miners sink
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The news: The ASX ended lower after China's latest stimulus announcement weighed on iron ore prices and dragged down miners including BHP, Fortescue and Rio Tinto.
The benchmark ASX 200 fell 0.35% to end at 8,266.2, with six out of 11 sectors finishing in red.
Biggest movers:
- Champion Iron (-9.76%) — Led declines among iron ore miners after China's muted stimulus announcement on Friday, while BHP (-4.08%), Fortescue (-7.32%), Rio Tinto (-3.11%), Mineral Resources (-3.95%) and Deterra Royalties (-4.30%) also fell.
- A2 Milk (-6.82%) — Citi analysts warned they are "incrementally cautious" on the New Zealand dairy producer following a recent trip to China.
- HMC Capital (4.05%) — Agreed to buy Australian colocation data centre operating platform iseek for $400 million and said it was on track to list its DigiCo Infrastructure REIT on the ASX by the end of the year.
Earnings:
- Endeavour Group (-4.86%) — Reported Q1 sales growth but cut its retail margin outlook as cost-of-living pressures continue to impact consumer spending.
- Incitec Pivot (0.32%) — Swung to a full-year loss after heavy write-downs in its US and Australian fertiliser businesses and lower earnings following the sale of its US ammonia facility.
- Qube (0.53%) — Reaffirmed its full-year guidance but warned that its growth rate is expected to be "modest" compared to FY24.
Other news:
- Resolute Mining (-32.84%) — Confirmed that its CEO Terence Holohan and two other employees have been detained in Mali by government officials.
- Energy sector (-0.67%) — Oil prices lowered after supply disruption eased in the US and Friday's stimulus announcement in China disappointed investors. Beach Energy (-1.56%) and Karoon Energy (-1.79%) were among the hardest hit.
- Genesis Minerals (4.02%) — New drilling results across a number of the miner's gold projects in Western Australia have boosted its hopes of achieving its five-year growth target.
- Stockland (2.18%) — Upgraded its full-year guidance after receiving regulatory approval for the acquisition of 12 communities projects from Lendlease.
- Liontown Resources (0.60%) — Outlined up to $100 million in cost reductions for its flagship Kathleen Valley project in response to the "low-price lithium environment".
- Silk Logistics (40.82%) — The board of the ASX minnow agreed to a buyout from Dubai-based DP World, Australia's biggest ports operator.
- Iress (-0.10%) — Faces Federal Court action from Emergency Services Superannuation Board (ESSSuper), in relation to an existing dispute between the companies linked to their Platform Services Agreement.
The Australian dollar is buying 65.93 US cents.
What’s Ahead:
Coles, Lifestyle Communities, Platinum Asset Management and Pointsbet will hold their annual general meetings on Tuesday.
Elsewhere, Westpac will publish its consumer sentiment index and NAB will post its business confidence report.
