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The ASX opened lower and looked weak throughout the session today, with the 8500 level providing some support through the afternoon, though there were few real signs of a meaningful bounce. Rising oil prices and another sharp move higher in bond yields continued to weigh heavily on sentiment as markets grapple with the prospect of higher for longer outlook on rates.
It was a broad-based selloff under the surface, with 10 of the 11 sectors finishing lower. Industrials and rate sensitive Real-Estate led the decline as investors rotated away from economically sensitive areas of the market, while Materials also struggled on growth concerns stemming from higher yields.
- ASX 200: 8,505.30 / −125.54pts / −1.45%
- AUD/USD: 0.7137 / −0.18%
- Best sectors: Energy +2.00%, Financials −0.25%, Communications −0.82%
- Worst sectors: REITs −2.81%, Materials −2.84%, Industrials −4.02%
- Brambles (ASX: BXB) -20.23% suffered its biggest fall in more than two decades after downgrading FY26 earnings guidance, with management pointing to weaker pallet demand, higher transport costs and softer global trade conditions.
- Agribusiness group Elders (ASX: ELD) -22.92% plunged after delivering a weaker-than-expected first-half result, with higher costs and leverage overshadowing stronger gross margins. Concerns around dry east coast conditions and integration risk tied to the Delta acquisition also weighed on sentiment.
- Energy stocks outperformed as oil prices climbed, with Woodside Energy (ASX: WDS) +2.88% and Santos (ASX: STO) +2.66% both firmer. Santos also announced first oil from its Pikka Phase 1 development in Alaska.
- A brutal session for Tuas (ASX: TUA) -62.79%, which collapsed after Singapore’s regulator suspended its review of the proposed Simba–M1 merger amid an investigation into possible unauthorised spectrum use.
- Healthcare name Pro Medicus (ASX: PME) +2.79% bucked the broader market weakness after securing a seven-year, ~$90m imaging contract with US hospital group Beth Israel Lahey Health.
- Rare earths developer Northern Minerals (ASX: NTU) -4.17% dropped after Treasurer Jim Chalmers ordered six investors to divest holdings in the company due to concerns around Chinese influence.
- ALS (ASX: ALQ) -1.67% eased despite a slight earnings beat, with investors focusing on conservative FY27 guidance and ongoing supply chain risks linked to the Middle East conflict.
- Mining heavyweights BHP (ASX: BHP) -2.80% and Rio Tinto (ASX: RIO) -3.63% were weaker despite copper remaining near record highs, as broader market weakness and inflation concerns outweighed commodity support.
- Gold stocks were also under pressure as rising bond yields weighed on bullion, with Newmont (ASX: NEM) -4.22% and Northern Star (ASX: NST) -2.44% both lower.
- Defence and drone-related themes remained in focus with ASX debutant KTEK Aerosystems (ASX: KTK) +102.5% more than doubling on its first day of trade following a heavily oversubscribed IPO.
- Mayne Pharma (ASX: MYX) +43% edged higher after announcing plans to expand fulfilment operations in Kentucky following stronger-than-expected demand from its DistributeRx platform
- Oil: trading around $US107.80/barrel (WTI) +2%
- Gold: traded flat around $US4,540/oz around our close.
- Iron Ore: $108.30/mt / −0.8% for the day
- Asian Markets: China −0.5%, Hong Kong –1.6% and the Nikkei −1.9%.
- Global Futures: S&P 500 E-Mini −0.66%, Dow E-Mini −0.73%, FTSE −1.07%
