Healthcare and technology stocks outperform as investors rotate away from resources and banks
Australian shares were lower at midday, with the S&P/ASX 200 falling to 8,644.70 at 12:25pm AEST, putting the benchmark on track for a 1% weekly decline. Investor sentiment remained under pressure as iron ore prices fell to a two-month low of US$101.65 a tonne amid rising supply and softer seasonal steel demand. Geopolitical tensions also remained in focus, with little progress reported in ceasefire talks between the US and Iran, helping push oil prices modestly higher to around US$95.50 a barrel.
Materials led the market lower, with BHP, Fortescue, Rio Tinto, Mineral Resources and South32 all retreating. Energy stocks also weakened despite firmer oil prices, while the major banks extended recent losses. Investors instead rotated into defensive healthcare names, with CSL and ResMed among the strongest performers. Technology stocks also gained ground, led by Megaport, which surged after completing a $518 million capital raising to support its artificial intelligence strategy.
In company news:
Chilwa extends niobium mineralisation at Nakombe discovery
Chilwa Minerals (ASX: CHW) reported further encouraging drilling results from its Nakombe niobium target in southern Malawi, with hole MPYDD015 returning 22 metres at 0.228% Nb₂O₅ within a broader 161.5 metre mineralised zone averaging 0.165% Nb₂O₅. The hole represents the southernmost drilling completed to date and confirms continuity of mineralisation across a 270-metre strike length. The company said the niobium system remains open at depth and along strike, with Phase 2 drilling planned to test northern and eastern extensions of the target. Chilwa is advancing towards defining a maiden Exploration Target while continuing work across its broader heavy mineral sands, rare earths and critical minerals portfolio in Malawi. Click here for full announcement.
Arika secures full ownership of flagship WA gold projects
Arika Resources (ASX: ARI) has completed the acquisition of the remaining 20% interests in its Yundamindra and Kookynie Gold Projects in Western Australia’s Leonora-Laverton region, securing full ownership of both assets. The transaction involved a net cash payment of $500,000 and the issue of 70.8 million Arika shares, consolidating the company’s position across two advanced gold projects with multiple historical workings, granted mining leases and proximity to existing processing infrastructure. The company said full ownership provides greater operational and strategic flexibility as it accelerates exploration, resource growth and development opportunities. Arika is preparing to commence its next phase of drilling this month, including resource definition and expansion drilling, while advancing work towards maiden Mineral Resource Estimates across both projects.
Tundulu airborne survey defines large scale carbonatite system
AuKing Mining (ASX: AKN) has reported results from a high-resolution airborne magnetic and LiDAR survey at its Tundulu Rare Earth Project in southern Malawi, with the data indicating that historical drilling has tested only a small portion of a much larger carbonatite intrusive complex. The survey defined a large-scale, structurally coherent system centred on Nathace Hill and identified multiple untested intrusive margins, structural corridors and potential demagnetised zones that are considered priority drill targets. A peer review by a former Rio Tinto chief geophysicist validated the company’s interpretation of the survey results
