Australian Shares Slump as Miners Counter Real Estate and Healthcare Gains
The S&P/ASX 200 index dropped 0.3% on Thursday, with mining stocks leading the decline due to falling iron ore prices and weaker global steel market outlook, despite gains in real estate and healthcare sectors.
Australian SharesMining StocksReal EstateHealthcareIron Ore PricesReal Estate MaharashtraOct 24, 2024
Fortescue, one of the major mining companies, saw a significant drop of up to 3.4%, marking its worst session in over two weeks. Despite reporting higher first-quarter iron ore shipments, the company could not escape the broader market trend. Other mining giants, Rio Tinto and BHP Group, also faced losses, falling 0.4% and 0.9%, respectively.
The local gold stocks were the biggest losers, down 2.6%, as gold prices declined due to a stronger U.S. dollar, which typically reduces the appeal of gold as a safe-haven asset. Northern Star Resources, a prominent gold miner, saw its shares drop by 1.1%, although it managed to maintain its fiscal 2025 guidance.
Technology stocks also took a hit, declining 1.3%. Sector leaders Xero and WiseTech Global were down 0.7% and 1.8%, respectively. The energy sector faced a 0.5% decline, influenced by lower oil prices following data showing a significant rise in U.S. crude inventories. Major players like Woodside Energy and Santos both fell around 0.4%.
Financials dropped 0.2%, with the 'Big Four' banks recording losses between 0.2% and 0.4%. However, not all sectors were in the red. Healthcare stocks managed to rise 0.6%, aided by a stronger dollar, while real-estate stocks gained 0.7%.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index inched up 0.1% to 12,802.04, providing a stark contrast to the Australian market.
In summary, while real estate and healthcare sectors showed resilience, the overall market sentiment was dampened by the significant decline in mining and related sectors, underscoring the impact of global economic trends on local markets.
Frequently Asked Questions
Why did Australian shares fall on Thursday?
Australian shares fell primarily due to a significant decline in mining stocks, which were impacted by falling iron ore prices and a weaker global steel market outlook.
Which mining company experienced the biggest drop?
Fortescue, a major mining company, saw the biggest drop of up to 3.4%, marking its worst session in over two weeks.
How did the gold sector perform?
The gold sector performed poorly, with local gold stocks declining 2.6% due to a stronger U.S. dollar, which typically reduces the appeal of gold as a safe-haven asset.
Which sectors showed gains despite the overall market downturn?
Healthcare and real estate sectors showed gains, rising 0.6% and 0.7%, respectively, despite the overall market downturn.
What was the performance of New Zealand's benchmark index?
New Zealand's benchmark S&P/NZX 50 index edged up 0.1% to 12,802.04, providing a contrast to the Australian market's decline.
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