Iron ore futures drill miners lower, Energy weighs: ASX down 0.8% at noon

Market Reports

by Lauren Evans

The Australian sharemarket has fallen mid-morning, weighed down by the resources sector as investors mull on the prospect of tighter financial conditions. S&P 500 contracts turned lower, while the iron ore futures are pointing to a 10 per cent fall, which has put iron ore miners under pressure.

At noon, the S&P/ASX 200 is 0.8 per cent or 50 points lower at 6,425. The SPI futures are pointing to a fall of 37 points.

Energy is the worst-performing sector, down 5.4 per cent, followed by materials, down 4.4 per cent. Real estate is the best sector, up 2.1 per cent, followed by consumer discretionary, up 1.9 per cent.

PointsBet (ASX:PBH) is the winner on the ASX 200, trading 11.2 per cent higher at $2.39 after securing a $94.16 million investment from SIG Sports Investment. The worst performer is New Hope Corporation (ASX:NHC), down 12.8 per cent to $3.31.

Across the resource stocks, Woodside Energy (ASX:WDS) is down 5.4 per cent to $30.19 and Santos (ASX:STO) is trading 5.2 per cent lower at $7.38.

Fortescue Metals (ASX:FMG) is leading iron ore miners lower, down 7.3 per cent to $17.25, with Rio Tinto (ASX:RIO) down 4.9 per cent to $101.72 and BHP (ASX:BHP) trading 4.7 per cent lower at $40.51.

Evolution Mining (ASX:EVN) led gold stocks lower, down 6.2 per cent to $3.46, with Northern Star (ASX:NST) trading 5.4 per cent lower at $8.14.

Meanwhile, the financial sector has rebounded thanks to gains from all four major banks, with Commonwealth (ASX:CBA) leading the pack, up 1.6 per cent to $88.63. ANZ (ASX:ANZ) is up 1.4 per cent to $21.45, NAB (ASX:NAB) has added 0.6 per cent to $26.07 and Westpac (ASX:WBC) is trading 0.5 per cent higher at $19.28.

Company news

Vicinity Centres (ASX:VCX) has upgraded its FY22 guidance and announced a $245 million uplift in its preliminary valuations for the six months ending June 30. Shares are trading 3.5 per cent higher at $1.80.

Austal (ASX:ASB) has been awarded two contracts worth over $300 million combined, which the company says helps diversify its long-term revenue base. Shares are trading 0.8 per cent lower at $1.84.

APA Group (ASX:APA) has executed a 30-year gas transportation and storage agreement and a development agreement with Snowy Hydro. Shares are trading 1.3 per cent lower at $11.11.

Centuria Capital (ASX:CNI) subsidiary Primewest has divested five neighbourhood shopping centres on behalf of two unlisted wholesale funds, to Shopping Centres Australasia Property Group for $180 million. Shares are trading 1.6 per cent higher at $1.92.

Shares in Cooper Energy (ASX:COE) are in a trading halt, pending an announcement by the company regarding arrangements concerning the Orbost Gas Processing Plant. Shares traded at 32 cents on Friday.

Arizona Lithium (ASX:AZL) has signed a 5-year lease with extension options for a lithium research centre in Tempe, Arizona. Shares are trading 6 per cent lower at 9.4 cents.

Hawsons Iron (ASX:HIO) has signed a two-year option agreement to purchase three contiguous parcels of land suitable for developing an export facility for the Hawsons Iron Project. Shares are trading 4.6 per cent lower at 42 cents.

Credit Clear (ASX:CCR) has reported a record $3.03 million in revenue during May, and an operational profit of $23,000 thanks to growth in new and existing clients. Shares are trading 10 per cent higher at 38 cents.

Transurban (ASX:TCL) will pay a distribution of 26 cents per stapled security for the six months ending June 30. Shares are trading 1.6 per cent higher at $13.84.

Infomedia (ASX:IFM) has received a further non-binding proposal from Solera to acquire the company for $1.70 per share. Shares are trading 7.7 per cent higher at $1.60.

X2M Connect (ASX:X2M) has continued to build its Asia footprint after winning new contracts in China and South Korea valued at around $2 million. Shares are trading 10 per cent higher at 9.9 cents.

Retail Food Group (ASX:RFG) has continued to observe gradual improvement during the second half of FY22 as covid restrictions ease. Shares are trading 9.5 per cent higher at $0.046.

Commodities and the dollar

Gold is trading at US$1838.11 an ounce.
Iron ore is 5.7 per cent lower at US$122.15 a ton.
Iron ore futures are pointing to a rise of 10.0 per cent.
One Australian dollar is buying 69.29 US cents.

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