Australian Shares Plunge as Miners Struggle Amid Real Estate and Healthcare Gains
The Australian stock market took a hit on Thursday, with miners, particularly Fortescue, leading the decline due to falling iron ore prices. This downward trend in mining stocks was partially offset by gains in the real estate and healthcare sectors.
Australian SharesMining StocksReal EstateHealthcareSpasx 200Real Estate MumbaiOct 24, 2024
The mining sector was the biggest drag on the market, with stocks falling 1.1%. Iron ore prices declined due to a weaker global steel market outlook and softer forecasts for China’s economic recovery. Fortescue, a major player in the mining industry, saw its shares plummet by as much as 3.4%, marking its worst session in over two weeks, despite reporting higher first-quarter iron ore shipments. Competitors Rio Tinto and BHP Group also faced losses, declining by 0.4% and 0.9%, respectively.
Local gold stocks were among the biggest losers, dropping 2.6%. The decline in gold prices, attributed to a stronger U.S. dollar, affected these stocks. Northern Star Resources, a notable gold miner, saw a 1.1% drop, although it maintained its fiscal 2025 guidance.
Technology stocks also took a hit, falling 1.3%. Sector giants Xero and WiseTech Global experienced declines of 0.7% and 1.8%, respectively. Energy stocks were not spared either, dropping 0.5% due to lower oil prices. Data showing a significant rise in U.S. crude inventories contributed to this decline. Major players like Woodside Energy and Santos both fell by around 0.4%.
Financials were also affected, retreating by 0.2%. The 'Big Four' banks saw their shares fall between 0.2% and 0.4%.
Despite the overall downturn, healthcare stocks managed to gain 0.6%, aided by a stronger dollar. Real estate stocks also showed resilience, rising by 0.7%.
Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index edged up 0.1% to 12,802.04.
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Frequently Asked Questions
What caused the decline in Australian shares on Thursday?
The decline in Australian shares was primarily due to the drop in mining stocks, particularly led by Fortescue, as iron ore prices fell. This was exacerbated by a weaker global steel market outlook and softer forecasts for China's economic recovery.
How did Fortescue perform despite reporting higher iron ore shipments?
Despite reporting higher first-quarter iron ore shipments, Fortescue's shares fell by as much as 3.4%, marking its worst session in over two weeks, due to the overall decline in iron ore prices.
Which sectors showed gains amid the overall market downturn?
Healthcare and real estate sectors showed gains, with healthcare stocks rising 0.6% and real estate stocks rising 0.7%.
What was the impact of the stronger U.S. dollar on the market?
The stronger U.S. dollar had a mixed impact. It reduced gold prices, leading to a 2.6% drop in local gold stocks, but it also aided healthcare stocks, which gained 0.6%.
How did New Zealand's stock market perform?
New Zealand's benchmark S&P/NZX 50 index edged up 0.1% to 12,802.04, showing a slight improvement compared to the Australian market.
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