Australia’s share market is on track to wipe nearly two weeks of gains in two sessions, as soft metals prices weigh on mining stocks.
The S&P/ASX200 fell 53.2 points by midday on Friday, to be down 53.2 per cent, to 8,632.9, as the broader All Ordinaries lost 53.4 points, or 0.6 per cent, to 8,863.5.
The top 200 is now down 1.1 per cent since Monday, after a sharp midweek turnaround in mining stocks and continued weakness in the banking sector.
“The materials sector, which has been the backbone of the ASX200 this year, was hit hard as metal prices retreated,” IG market analyst Tony Sycamore said.
“Adding to the gloom, concerns mounted over accelerating iron ore exports from Guinea’s giant Simandou project, a development expected to pressure Pilbara volumes.”
Iron ore futures fell to 13-week lows below $US102 a tonne, while copper prices have retreated almost four per cent since nearly breaking their record high on Tuesday.
Mega miners BHP, Rio Tinto and Fortescue were all under pressure as the basic materials sector dived 1.9 per cent.
Gold stocks were also a sea of red, as the precious metal slipped to $US4,445 ($A6,226) an ounce, while battery minerals and rare earths producers also sold off.
The financials sector was also under pressure, down 0.7 per cent as all big four banks traded lower, as slowing economic growth, a cooling housing market and concerns about the federal government’s tax shake-up continued to weigh.
Energy stocks dragged as Brent crude eased to $US95.50 a barrel despite ongoing uncertainty around the Persian Gulf conflict, weighing on local fossil fuel producers.
The traditionally defensive consumer staples and health care sectors rallied for a second day, with strong leads from Woolworths, CSL and Pro Medicus.
ASX-listed tech stocks surged as Megaport rallied nine per cent after completing its $518 million equity raising as part of its artificial intelligence push.
In other company news, Resolute Mining was one of the top 200’s worst performers, tumbling almost seven per cent after its Syama project was impacted by security and supply chain issues in Mali.
Shares in investment group Perpetual jumped two per cent after it entered a sale deed to buy 70 per cent of asset servicing tech company Interfi Systems.
Insurer Nib gained 1.8 per cent after selling its travel portfolio to Allianz for $50 million.
The Australian dollar was buying 71.19 US cents, down from 71.35 US cents on Thursday at 5pm.
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