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The ASX finished the week on a softer note, with the index dragged lower by a sharp reversal in the miners following a strong run in commodity-linked names. Materials had been the market’s engine room recently, helped by record highs in copper and gold, but profit-taking arrived today as copper eased on signs higher prices are starting to bite into Chinese demand, while gold also softened as traders reassessed the outlook for US rates following hotter inflation data during the week. The weakness in resources was partly offset by a better session for Technology and a modest bounce in the major banks after yesterday’s heavy selling, though the broader tone remained cautious.
- ASX 200: 8,630.80 / −9.91pts / −0.11%
- AUD/USD: 0.7162 / −0.01 / −0.82%
- Best sectors: IT +3.20%, Energy +2.18%, Communications +1.01%
- Worst sectors: Consumer Disc. +0.30%, Utilities −1.43%, Materials −2.85%
- BHP (ASX: BHP) −2.58% fell after three consecutive record closes, while Rio Tinto (ASX: RIO) −3.24% snapping a four-session run of record highs.
- Gold names were weaker as bullion pulled back, with Evolution Mining (ASX: EVN) −5.52%, while lithium remained under pressure with Liontown (ASX: LTR) −6.00%.
- Mineral Resources (ASX: MIN) −7.68% was the clear laggard, falling more than 7% after Managing Director Chris Ellison sold 1.75 million shares worth ~$122.5m, his first on-market disposal in nine years.
- Technology was the bright spot, with Xero (ASX: XRO) +8.13% after yesterday’s heavy fall, WiseTech Global (ASX: WTC) +3.65% and Megaport (ASX: MP1) +2.38% adding to yesterday’s 28% surge.
- The banks stabilised after yesterday’s CBA-led selloff, with Commonwealth Bank (ASX: CBA) +1.91%, while ANZ (ASX: ANZ) +1.06%, Westpac (ASX: WBC) +0.34% and NAB (ASX: NAB) +0.27% were modestly firmer.
- Electro Optic Systems (ASX: EOS) +4.13% rallied strongly as it prepares to take control of MARSS, which has secured €102m in new orders from an existing Middle East customer.
- Vicinity Centres (ASX: VCX) +1.62% rose after agreeing to acquire the Eastern Creek Quarter retail precinct in western Sydney for $400m.
- Treasury Wine Estates (ASX: TWE) +1.92% edged higher after French billionaire Olivier Goudet lifted his stake from 8.14% to 9.04%.
- Bapcor (ASX: BAP) −5.95% slipped after Citi downgraded the stock to Sell and cut earnings forecasts materially.
- Oil: trading around $US103.20/barrel (WTI) +2%
- Gold: trading around $US4,574/oz around our close. −1.7%
- Iron Ore: $109.60/mt / −0.8% for the day
- Asian Markets: China −0.63%, Hong Kong +0.14% and the Nikkei −0.81%.
- Global Futures: S&P 500 E-Mini −0.66%, Dow E-Mini −0.33%, FTSE −0.84%
