ASX down 0.1%: Interest rate-sensitive real estate stocks

Market Reports

by Peter Milios

Australian shares started the trading day on a decline, influenced by the negative trend in Wall Street due to comments from US Federal Reserve policymaker Christopher Waller opposing expectations of an imminent interest rate cut. The the S&P/ASX 200 is 0.01 per cent lower at 7,413.80. This decline was primarily driven by losses in interest rate-sensitive real estate stocks, with Scentre Group, Charter Hall, and Goodman witnessing decreases. 

In the United States, the S&P 500 decreased by 0.4% at the end of the trading session, while the Nasdaq slipped 0.2%, and the Dow Jones declined by 0.6%. Additionally, the Australian dollar (AUD) experienced a significant decline of up to 1.2%, dropping below US66¢, in response to a strengthening US dollar that saw its most significant rally in 10 months. Furthermore, the yield on the US 10-year note surged by over 10 basis points during this period.

The SPI futures are pointing to a fall of 1 point.

Best and worst performers

The best-performing sector is Consumer Discretionary, up 0.44 per cent. The worst-performing sector is Energy, down 0.96 per cent.

The best-performing large cap is Boral (ASX:BLD), trading 1.82 per cent higher at $5.325. It is followed by shares in Aristocrat Leisure (ASX:ALL) and Rio Tinto Group (ASX:RIO).

The worst-performing large cap is Evolution Mining (ASX:EVN), trading 20.53 per cent lower at $2.98. It is followed by shares in Northern Star Resources (ASX:NST) and Newmont Corporation (ASX:NEM).

Company news

Intra Energy Corporation (ASX:IEC) announced that pegmatite rock samples collected and assayed during the due diligence process at the Lake Johnston Lithium project contain highly anomalous levels of key lithium pathfinder minerals tantalum and niobium. The sampling covers a 2-kilometre trend of pegmatite outcrops with a further 5 kilometres of the trend yet to be mapped and sampled. Shares are trading 20 per cent higher at 0.3 cents.

Pinnacle Minerals (ASX:PIM) has announced updates to their Wirrulla Project. Firstly, the Uranium / REE Wirrulla Project in South Australia has now been granted. Secondly, the recent satellite and radar imagery analysis at the Wirrulla Project has highlighted uranium mineralisation potential and defined a number of priority target areas. Shares are trading 12.5 per cent higher at 13.5 cents.

Minerals 260 (ASX:MI6) has announced new lithium and rare earths targets have been identified at their 100% owned Aston Project, in WA. These targets are the highest lithium-in-soil result for the Aston Project since exploration by Minerals 260 began in May 2023. Shares are trading 3.64 per cent higher at 28.5 cents.

Commodities and the dollar

Gold is trading at US$2029.10 an ounce.

Iron ore is 0.4 per cent higher at US$129.45 a tonne.

Iron ore futures are pointing to a 1.55 per cent rise.

One Australian dollar is buying 65.83 US cents.

Peter Milios

Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.

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