Commodity stocks drag ASX 1.5% lower

Market Reports

by Peter Milios

At the closing bell, the S&P/ASX 200 was 1.46 per cent lower at 6,965.50, erasing almost all gains for 2023 and just above the year low of 6946.2 points on January 3.

Despite Credit Suisse's efforts to shore up its cash position, the market declined by 1.5 per cent, with the energy sector experiencing the biggest drop of 4.8 per cent and materials down by 3.2 per cent. Woodside (ASX:WDS) and BHP (ASX:BHP) lost 5.4 per cent and 4.8 per cent, respectively.

Financials fell by 1.4 per cent, while CBA (ASC:CBA) performed the best, with only a 0.1 per cent decline among the big four banks.

Gold miners, however, saw an increase. Dow Jones sharemarket futures closed up 0.3 per cent and remained flat throughout the day.


The Dow Jones futures are pointing to a rise of 117 points.
The S&P 500 futures are pointing to a rise of 18 points.
The Nasdaq futures are pointing to a rise of 64.5 points.
The SPI futures are pointing to a fall of 90 points when the market next opens.

Best and worst performers

The best-performing sector was Health Care, up 1.49 per cent. The worst-performing sector was Energy, down 4.77 per cent.

The best-performing large cap was Auckland International Airport (ASX:AIA), closing 2.75 per cent higher at $8.23. It was followed by shares in CSL (ASX:CSL) and Cochlear (ASX:COH).

The worst-performing large cap was Computershare (ASX:CPU), closing 7.01 per cent lower at $20.84. It was followed by shares in Woodside Energy Group (ASX:WDS) and Worley (ASX:WOR).

Asian markets

Japan's Nikkei has lost 0.94 per cent.
Hong Kong's Hang Seng has lost 1.40 per cent.
China's Shanghai Composite has gained 0.05 per cent.

Company news

RareX (ASX:REE) has announced more broad +400 metre and +200 metre rare earth and phosphate intercepts have been discovered at their Cummins Range Resource. RareX Managing Director, Jeremy Robinson, said “The impending resource upgrade at Cummins Range is shaping up as a pivotal development in the Company’s strategy to develop a long-life mining and processing operation at Cummins Range.” Shares last traded unchanged at 4.3 cents

Ora Banda Mining (ASX:OBM) announced that it has entered into an agreement with Lamerton and Geoda for the sale of certain noncore Lady Ida tenements for a total consideration of $10 million. In response, the managing director, Luke Creagh commented, “The sale of these tenements for $10 million is a great outcome for OBM shareholders as they do not align with OBM’s strategy to target high-grade underground deposits.” Shares last traded unchanged at 12.5 cents.

Sayona Mining (ASX:SYA) has announced that 1,200 tonnes of saleable lithium concentrate has been produced at their North American Lithium operation in Québec, Canada. In response, Managing Director, Brett Lynch commented, “As the electrification revolution continues, Québec is in pole position thanks to its sustainable hydropower, leading infrastructure and proximity to market.” Shares last traded 1.16 per cent higher at 21.8 cents.

Commodities and the dollar

Gold is trading at US$1,917.30 an ounce.
Iron ore is 0.1 per cent higher at US$133.10 a tonne.
Iron ore futures are pointing to a 2.1 per cent fall.
Light crude is trading $0.79 higher at US$68.40 a barrel.
One Australian dollar is buying 66.38 US cents.

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