Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn
About

News

Mining selldown drags Aust shares into red

Christian Edwards  |  18 Jan 2018Text size  Decrease  Increase  |  
Email to Friend

The Australian share market has closed lower, with the materials sector heavily sold down on shifting commodity prices and expectations of a correction.

The benchmark S&P/ASX200 index was down 0.54 per cent, at 6,015.8 points at 1630 AEDT on Wednesday, with the materials sector down more than two per cent.

A retreat in commodity prices triggered losses for BHP Billiton (ASX: BHP) and Rio Tinto (ASX: RIO), down 2.9 per cent to $30.74 and 3.5 per cent to $78.45, after both miners lost three per cent each on the London exchange overnight.

Macquarie Private Wealth division director Martin Lakos said traders had been anticipating a correction in the mining sector but any fall was likely to be short-lived.

"That materials space has been the outstanding, outperforming sector for the Aussie market - but whether its three per cent or 10 per cent - any correction is likely to be short-lived and shallow when the broad backdrop of fundamentals is in good shape," Mr Lakos said.

Fortescue Metals (ASX: FMG) dropped three per cent and the gold miner Newcrest Mining (ASX: NCM) lost 0.6 per cent.

Diversified miner South32 (ASX: S32) dropped 1.5 per cent to $3.92 despite showing a solid first half and maintaining full-year guidance for most of its businesses, except for its South African manganese production where it flagged an improvement.

Investing Compass
Listen to Morningstar Australia's Investing Compass podcast
Take a deep dive into investing concepts, with practical explanations to help you invest confidently.
Investing Compass

In other company news, A2 Milk announced it will expand its US presence to north-eastern states and its shares gained 2.4 per cent to $7.60.

Rival infant formula maker Bellamy's Australia continued to gain ground after upgrading its full-year profit expectations on Tuesday, with the stock advancing 5.9 per cent to $14.48.
Sirtex Medical climbed 13.9 per cent to $17.83 after the cancer specialist announced a lift in expected first-half earnings and higher second-half sales.

A retreat in global oil prices from recent highs left local energy producers mixed, with Origin Energy (ASX: ORG) up 0.4 per cent at $9.19, Woodside Petroleum (ASX: WPL) down 0.5 per cent at $33.66 and Santos 0.8 per cent lower at $5.29.

The big four banks were lower at the close: ANZ (ASX: ANZ) down 0.3 per cent and National Australia Bank (ASX: NAB), Westpac (ASX: WBC) and Commonwealth Bank (ASX: CBA) all 0.6 per cent lower.

The Australian dollar had a brief gain after the release of ABS data showing a better-than-expected 2.3 per cent rise in home loan approvals for November but pulled back and at 1630 AEDT was trading at 79.51 US cents, from 79.64 US cents on Tuesday.

* At 1630 AEDT, the benchmark S&P/ASX200 index was down 32.8 points, or 0.54 per cent, at 6,015.8 points
* The broader All Ordinaries index was down 31.6 points, or 0.51 per cent, at 6,134.3 points
* The SPI200 futures contract was down 33 points, or 0.55 per cent, at 5,959 points
* National turnover was 4.6 billion securities traded worth $5.8 billion.

 

AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

is an AAP journalist.

AAP logo

© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

Email To Friend