Resource stocks dragged ASX lower, but a new entrant to the sector made a dramatic start as its share price more than tripled.
The Australian stock market ended a two-day winning streak as falling commodity prices hit resource stocks, but a graphite game made a stunning debut as its stock price more than triple.
The benchmark S & P / ASX200 closed 0.67% lower at 7420.4, while the All Ordinaries index lost 0.66% to 7747.1.
CommSec analyst Tom Piotrowski said the sellers argued their case after a “disappointing” Wall Street advance overnight.
OMG chief executive Ivan Churilov said falling commodity prices have slowed the resource sector, which has been growing steadily since the start of the month.
âThere haven’t been a lot of strong individual performances, up or down,â he said.
âSentiment tends to be weaker in mid-November and the market is still looking for some solid directional pull.
“We are still seeing a lot of money being taken out of stocks, so it will be interesting to see how the next half of the month plays out.”
Rio Tinto fell 2.23% to $ 89.79, BHP weakened 2.59% to $ 36.49, Pilbara Minerals lost 2.04% to $ 2.40, South32 lost 1, 7% to $ 3.44, Fortescue was down five cents to $ 15.89 and the newly-listed Minerals 260 fell 8.44%. at 70.5 cents.
âThe metals on the LME were down in the range of 1.5-2% in the case of aluminum, copper and nickel, which gives you an idea of ââwhy most of the major names resources were dwindling, âPiotrowski said.
Among gold producers, Resolute Mining fell 4.44% to 43 cents, Northern Star slipped 1.6% to $ 10.47, Newcrest lost 0.98% to $ 25.19 and Evolution fell. declined 0.72% to $ 4.13.
OZ Minerals provided improved estimates of mineral resources and ore reserves for its flagship Prominent Hill copper and gold mine in South Australia, but its shares were down 0.75% to $ 25.32.
Evolution Energy Minerals got off to a flying start in ASX, climbing 210% to 62 cents.
Executive Chairman Trevor Benson said the company was “extremely pleased” with the buildup of investors in its initial public offering, which was significantly oversubscribed and raised $ 22 million.
The funds will be used to advance its Chilalo graphite project in south-eastern Tanzania.
In the energy sector, Oil Search was down 1.17% to $ 4.23 and Santos was down 0.88% to $ 6.80.
ANZ fell five cents to $ 28.42, Commonwealth Bank fell 0.3% to $ 107.68, National Australia Bank lost 0.58% to $ 29.23 and Westpac lost eight cents to 22 , $ 75.
Westpac raised its fixed rates for the third time in a month and now has no advertised fixed mortgage rates below 2%, like CBA and ANZ, according to RateCity.
Westpac is also reimbursing thousands of employees a total of $ 6 million after self-reporting the underpayment of long-term leave entitlements, identified in an internal review, to the Fair Work ombudsman.
The Macquarie Group fell 0.33% to $ 202.50, but is still trading near record highs.
Imugene gained 3.48 percent to 59.5 cents after announcing a new clinical trial supply agreement with Merck and Pfizer for the treatment of gastric cancer.
The mesoblast retreated after rising 11.77% on Monday following the results of phase three testing of its Rexlemestrocel-L cell therapy, which treats chronic heart disease.
The company’s shares fell 8.68 percent to $ 1.73.
Mirvac real estate group was flat at $ 2.80 after holding its annual general meeting and saying the outlook for fiscal 2022 was positive.
Afterpay was one of the few major stocks in the green, adding 1.72% to $ 117.39.
In economic news, Reserve Bank of Australia Governor Philip Lowe provided an update on inflation, saying it was “still plausible” that official interest rates would not rise before. 2024.
“RBA Governor Lowe’s inflation speech has pushed the market down since the morning session, sticking to his guns on transient inflation,” Churilov said.
âThe RBA’s view is that inflation will resolve itself without too many changes in current operating procedures.
âWe have yet to see commodity price inflation in China or the United States, but other institutions, such as banks, are still skeptical of the RBA’s forecast and expect interest rates to rise soon. next year.
“Unemployment levels are also expected to drop, despite last week’s hiccups in the number of new jobs.”
The RBA also released the minutes of its last meeting, which “didn’t reveal much except the potential extension of the bond buying program last February,” Churilov said.
The ANZ-Roy Morgan Weekly Consumer Confidence Score fell 2.8% – the highest in 14 weeks – with a feeling of confidence in every state except Queensland.
“Confidence had reached 17-week highs the previous week amid optimism over economic reopening with double-dose Covid-19 vaccination rates above 80% in Southeast Australia “said CommSec Senior Economist Ryan Felsman.
The Australian dollar was buying 73.45 US cents, 54.72 UK pence and 64.55 euro cents in afternoon trading.