- Shares down 1pc on selloff across the board
- The local market tracks weakness in Europe overnight
- Uranium stock ERA up 18pc, RIO down after releasing production update
The ASX dropped almost -1% on Tuesday as all 11 sectors finished in the red.
The index tracked weakness in Europe overnight where a report showed that the German economy shrank by 0.3% in 2023, narrowly dodging a recession. Wall Street meanwhile was closed for Martin Luther King Day.
On the ASX, Miners and Energy stocks led the selloff, with Healthcare and Utilities close on their heels.
Oil prices remained steady despite continued tensions in the Red Sea.
“The disruption of global trade in the Red Sea raises concerns about potential inflationary pressures,” said de Vere Group’s Nigel Green.
“Disruptions to the supply chain typically lead to increased costs for transportation, production, and distribution, which may ultimately be passed on to consumers.”
The Westpac and the Melbourne Institute published their January consumer confidence report this morning, showing a drop of -1.3% to 81 points, a level close to COVID-era lows.
Read more: Aussie markets and people are depressed going into lunch on Tuesday
Across the region, Asian stock markets mainly retreated today as traders reassessed their views on interest rates.
The market’s focus turns now to Fed Reserve Governor Christopher Waller’s speech later today (US time) to see whether there will be more pushback on the potential rate cut in March.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| ERA | Energy Resources | 0.07 | 22.03 | 9,986,116 | $1,306,749,652 |
| CEN | Contact Energy Ltd | 7.62 | 4.38 | 8,619 | $1,858,360,146 |
| IPH | IPH Limited | 6.63 | 2.31 | 403,194 | $1,593,973,359 |
| CHC | Charter Hall Group | 11.86 | 2.24 | 1,177,306 | $5,486,767,508 |
| ABB | Aussie Broadband | 3.71 | 2.20 | 348,348 | $1,011,506,477 |
| SGR | The Star Ent Grp | 0.51 | 2.00 | 14,133,723 | $1,434,340,439 |
| ORA | Orora Limited | 2.68 | 1.71 | 1,508,693 | $3,533,404,840 |
| SKC | Skycity Ent Grp Ltd | 1.69 | 1.50 | 91,852 | $1,265,741,673 |
| PLS | Pilbara Min Ltd | 3.61 | 1.40 | 13,891,741 | $10,713,705,884 |
| LFG | Liberty Fin Group | 4.52 | 1.12 | 6,696 | $1,358,003,312 |
| MGH | Maas Group Holdings | 3.79 | 1.07 | 104,378 | $1,229,716,129 |
Uranium miner Energy Resources of Australia (ASX:ERA) was the best performing large cap today, up 22% on no specific news.
So why the two straight days of gains? Maybe because minority shareholders are holding out hope that Traditional Owners change their tune and let ERA develop Jabiluka, an orebody RIO (its biggest shareholder) has promised will never be touched.
Read more here: Resources Top 4: This uranium stock is a money pit with zero upside. Why is it up 60pc in a week?
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| LOV | Lovisa Holdings Ltd | 22.59 | -5.78 | 395,698 | $2,629,332,557 |
| SLX | Silex Systems | 5.07 | -4.70 | 694,999 | $1,255,233,119 |
| ANN | Ansell Limited | 23.52 | -4.39 | 213,384 | $3,084,599,387 |
| S32 | South32 Limited | 3.41 | -4.21 | 16,112,963 | $16,124,160,502 |
| SVW | Seven Group Holdings | 35.33 | -4.15 | 483,164 | $13,401,764,737 |
| CIA | Champion Iron Ltd | 8.03 | -4.12 | 1,092,881 | $4,337,787,964 |
| RDX | Redox Limited | 2.25 | -3.43 | 40,253 | $1,223,439,727 |
| EVN | Evolution Mining Ltd | 3.75 | -3.35 | 3,106,598 | $7,664,965,336 |
| ELD | Elders Limited | 8.08 | -3.23 | 901,667 | $1,314,039,734 |
| RWC | Reliance Worldwide | 4.25 | -3.19 | 865,447 | $3,468,516,018 |
| SUL | Super Ret Rep Ltd | 16.19 | -3.14 | 1,114,503 | $3,773,560,815 |
| BPT | Beach Energy Limited | 1.56 | -3.12 | 3,187,548 | $3,661,540,518 |
| LFS | Latitude Group | 1.14 | -2.99 | 89,832 | $1,216,421,672 |
| BLD | Boral Limited | 5.26 | -2.87 | 2,664,847 | $5,967,708,347 |
| DMP | Domino Pizza Enterpr | 56.93 | -2.85 | 82,395 | $5,263,096,064 |
Rio Tinto (ASX:RIO) fell -1.5% after reporting its latest quarterly production update.
Rio said it shipped 331.8Mt of WA Pilbara iron ore during 2023, up 3% on 2022 as it delivered on guidance.
Its iron ore pellets and concentrate fell by 6% to 9.7Mt. Bauxite output remained flat at 54.6Mt. Aluminium production rose by 9% to 3.272Mt, while mined copper increased by 2% to 620,000t.
Rio also said its 2024 production guidance remains unchanged from that announced last month, and the company is set to lodge its full year results on February 21.