The Australian sharemarket is poised to end a two-day winning streak, with a decline in commodity prices impacting mining stocks. This downturn overshadowed gains in other sectors as investors shifted towards healthcare and insurance. At 2.10pm AEDT, the S&P/ASX 200 Index had fallen by 0.6 per cent, or 49.8 points, to 8870, with four out of the eleven sectors experiencing losses.
The materials sector was the weakest performer, influenced by significant drops in silver, gold, and copper prices. Major mining companies such as BHP also felt the downturn. Uranium miners also experienced significant selling pressure after AMD’s disappointing results affected confidence in AI demand, for which nuclear energy is a potential source. Paladin and Deep Yellow saw notable declines.
Conversely, investors rotated into traditionally safer sectors such as healthcare, consumer staples, and financials. ResMed and CSL experienced gains, as did major banks like Commonwealth Bank and ANZ. Regal Partners, an investment management firm, saw its shares increase after announcing an on-market share buy-back program of up to $75 million over 12 months. ASX Limited, which operates the Australian Securities Exchange, rose as the average daily number of trades increased by 71 per cent year-on-year.
Other notable movements included Elders, which fell despite appointing Rene Dedoncker as its next chief executive, with investors seemingly disappointed by the delayed start date. Neuren Pharmaceuticals, a biopharmaceutical company focused on developing therapies for neurological disorders, also tumbled following feedback on its NNZ-2591 product. Beach Energy reported a dip in net profit due to lower production resulting from flooding in the Cooper Basin.
