CAPITAL MARKETS

Sell-off sees ASX plummet

A HUGE sell-off on the Australian share market took place today on jitters the US Federal Reserve...

Lauren Barrett

Australian shares dropped more than 1% soon after the opening bell. And there was no reprieve in sight as risk-averse investors followed in the footsteps of Wall Street’s weak showing.

The S&P/ASX 200 index reversed yesterday’s gains, dropping to an intraday low of 4729 points.

Meanwhile, the release of the latest HSBC purchasing manager’s index indicated China’s manufacturing sector was contracting further.

The index dipped to a nine-month low of 48.3 points in June, down from 49.2 points in May, as output and new orders fell.

At the close, the Australian market fell 2.1%, or 103 points, to 4758.4 and the broader All Ordinaries lost 2% to 4743.9 points.

The Australian dollar fell further against the greenback for a fifth day, last trading at US92.49c.

Among the sectors, telecommunications, technology and utilities lost more than 1% while financials and the miners were the hardest hit, falling 2.6% and 3% respectively.

Gains among the blue chip miners were nowhere in sight, with Rio Tinto dipping 3.3%, or $A1.78, to $52.60 and BHP Billiton sinking 2.5% to $32.15.

Losses were seen across the board, with Iluka Resources dipping 5.1% to $9.96.

Gold miners sank as the price of the precious metal dropped further to $US1344.06 per ounce.

Most iron ore miners were hit following the data out of China.

Gindalbie Metals lost 11.5% to A11.5c and Atlas Iron sank 5.1% to 74c.

Fortescue Metals Group fell 6.5c to $3.14 after reporting a small drop in shipping guidance.

Shares in Reed Resources plummeted 24.5% to 3.7c on the back of an update regarding its Meekatharra gold operation.

Reed indicated the Bluebird pit mined 20,500 ounces of gold to May, down from its capacity of 22,600oz.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.