ASX slides 4.2% in worst day since 2020
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The news: The Australian sharemarket closed 4.23% lower, paring losses of more than 6% at market open, and marking its worst day since 1 May 2020.
The selloff was part of a wider rout across Asian markets amid growing concerns of an escalating global trade war, as China hit back against new US tariffs with a 34% duty on all US imports.
The big four banks each lost between 4.6% and 6%, while oil producers and miners tracked deep cuts in global commodity prices.
The benchmark S&P/ASX 200 index ended at 7,343.3 with all 11 sectors in the red.
The Australian dollar was last buying 60 US cents, having earlier dropped to its lowest level since the Covid-19 pandemic.
Biggest ASX 200 movers:
- Commodities — Energy (-7%) and materials (-4.8%) companies led declines as global commodities plunged. Oil giants Santos (-9.8%) and Ampol (-7%) fell as crude benchmarks tumbled, while BHP (-6.1%) tracked a drop in iron ore futures. Diversified miner Mineral Resources (-11.8%) ended as the worst performer while uranium stocks Deep Yellow (-11.5%), Paladin Energy (-9.6%) and Boss Energy (-8.7%) all tanked.
- Challenger (8.3%) — Japanese insurance group TAL Dai-ichi Life bought a 15.1% stake in the investment manager at a 53% premium to Friday's closing share price.
Tariff reaction:
- Lovisa (-8.3%) — Downgraded by Jarden from 'overweight' to 'neutral'. Analysts said they expect volumes to be impacted by tariff-related price increases, declining consumer sentiment, and decreasing global growth.
- Telix Pharmaceuticals (-2%) — Said it expects no material impact on its business or supply chain as a result of the new tariffs. It also noted "significant change" at the US Food and Drug Administration but has not been notified of any changes to ongoing applications with the US regulator.
- Nuix (-5.9%) — Told investors that its annualised contract growth is tracking to the lower end of guidance, with "recent increases in uncertainty and volatility in geopolitical and global economic landscape ... impacting the predictability of deal closure timeframes."
Deals:
- Woodside Energy (-5.8%) — Sold a 40% interest in its Louisiana liquified natural gas project to Stonepeak, in return for $5.7 billion in capital expenditure for the project.
- Abacus Storage King (20.7%) — Received a $1.9 billion takeover offer from Ki Corporation and New York-listed Public Storage.
Other news:
- IGO (-5.5%) — Chief financial officer Kathleen Bozanic will retire in December, having served in the role since 2022. Chief people and sustainability officer Sam Retallack will also leave this year, after 13 years with the company.
- Lifestyle Communities (-2.1%) — Reported improved sales in the March quarter but expects the rate to be subdued amid a challenging operating environment.
- Capricorn Metals (-4.4%) — Lifted quarterly production at its Karlawinda gold project in Western Australia and says it is on track to hit full-year guidance.
- Regis Resources (-2.7%) — Posted a drop in March quarter production but reaffirmed its full-year guidance.
