ASX Today Live News & Analysis

An early lift for Australia's share market has crumbled to a loss, after valuation concerns and portfolio rebalancing dragged on the heavyweight banking sector.

The S&P/ASX200 fell 45.8 points on Tuesday, down 0.52 per cent, to 8,682.8, as the broader All Ordinaries lost 37.8 points, or 0.42 per cent, to 8,996.9.

Only two sectors ended the session clearly higher, with raw materials stocks surging two per cent on strong commodity prices, while financials, utilities, real estate, consumer staples and health care stocks all lost more than one per cent.

"Looking at the market map, the banks are the main issue and there are a number of factors at play," Moomoo market strategist Michael McCarthy told AAP.

He said strong recent performances by multiple banks, concerns about lofty valuations, and fund managers rebalancing portfolios to kick off the new year and quarter, likely weighed on the big four.

Some of that liquidity found its way into materials stocks, as iron ore giants BHP, Rio Tinto and Fortescue all jumped 1.5 per cent or more.

Gold stocks were a mixed bag but broadly higher, with the All Ordinaries sub-sector up 0.3 per cent as spot prices edged upward to $US4,472 ($A6,643) an ounce.

Copper miners soared as the base metal surged to a record high above $US13,000 ($A19,300) per tonne, lifting names like Sandfire Resources and Capstone.

Battery mineral producers also rocketed higher, with lithium miners Liontown and PLS jumping almost 15 per cent and 9.5 per cent respectively.

BlueScope Steel shares rocketed more than 20 per cent to a 17-year high after it was the target of a takeover bid by SGH Limited and Steel Dynamics. SGH shares jumped almost five per cent to $48.60.

Energy stocks rose 0.3 per cent on Tuesday, as investors continued to weigh the likely outcome of the US intervention in Venezuela.

Laser enrichment technology Silex Systems was the worst performer of the top-200, plummeting by a third after one of its technology's licensees, Global Laser Enrichment, missed out on a US government funding program worth $US900 million ($A1.4 billion).

Turning to financials, Commonwealth Bank was the heaviest of the big four, down almost three per cent to $155.85, while ANZ, NAB and Westpac each shed roughly two per cent or more.

The utilities sector was the worst performing, down two per cent as APA Group, Origin and AGL sold off.

Health care companies were also under pressure, the segment fading 1.7 per cent with CSL, Sigma Health, ResMed, Sonic Healthcare and Pro Medicus all in the red.

Consumer-facing stocks bled lower and fell to their lowest levels since 2025's first quarter, in a broad based slump, with staples down 1.8 per cent as Coles tumbled 2.8 per cent to six-month lows.

There was general concern about retail's road ahead, Moomoo's Mr McCarthy said.

"While the market outlook is strong on the basis of soft monetary policy, the fact that interest rates are likely heading higher rather than lower here in Australia has raised real concerns about the outlook for consumers," he said.

The Australian dollar is buying 67.27 US cents, hovering at 14-month highs and up from 66.75 US cents on Monday at 5pm as greenback weakness continues.

ON THE ASX:

The S&P/ASX200 rose 45.8 points, or 0.52 per cent, to 8,682.8.

The broader All Ordinaries fell 37.8 points, or 0.42 per cent, to 8,996.9

The NZX 50 added 76.35 points (0.56%) to 13,663.58 while the Nikkei gained 685.28 points (1.30%) at the time of writing, to be closed at 52,518.08

Companies commencing Ex-Dividend Trading Today (ASX 300):

Qualitas Real Estate Income Fund