SYDNEY, AAP – Iron ore miners were weighing on an Australian share market which had otherwise moderate moves among most sectors.
The S&P/ASX200 benchmark index was lower by 8.6 points, or 0.12 per cent, to 6758.2 at 1200 AEDT on Monday.
The All Ordinaries was lower by 10.5 points, or 0.14 per cent, at 7004.1.
The materials sectors, which includes the iron ore miners, was lower by 1.14 per cent.
The price of iron ore slipped on concerns that Chinese steelmakers may reduce their output.
Information technology was down 1.46 per cent after the US Nasdaq dropped on Friday.
The property sector had the biggest gain, 0.94 per cent.
The energy sector rose 0.6 per cent following cuts to oil supply and optimism about fuel demand recovery.
The moves come after the US Dow Jones Industrial Index on Friday struck its fifth consecutive record high as investors bought shares in anticipation of a strong recovery in the US economy.
Reserve Bank governor Philip Lowe has told a business conference that it is important that investment grows if Australia is to enjoy a strong recovery from the COVID-19 pandemic.
He said it was understandable that many firms deferred investment plans during the downturn, although there was a pick-up late last year.
“But there is still a long way to go to get back to the level of investment before the pandemic, which itself was low by historical standards,” he said.
On the ASX, there were sizeable losses for the iron ore miners.
BHP fell 1.12 per cent to $47.43, Fortescue lost 4.18 per cent to $20.37 and Rio Tinto shed 2.82 per cent to $113.35.
Gold miner Evolution will buy Canadian miner Battle North for about $C343 million ($A354 million).
Battle North is developing a gold project in the Red Lake Gold District in Ontario and has the second largest exploration ground in the area.
The company is listed on the Toronto Stock Exchange.
Evolution has a mine in the same district and chair Jake Klein said the purchase would help its goal of producing more than 300,000 ounces of gold per year from the area.
Shares were up 3.03 per cent to $4.07.
A consortium including AGL and Australian government groups will buy windfarm operator Tilt Renewables.
Powering Australian Renewables, which is owned by AGL and the Queensland government’s Queensland Investment Corporation, will acquire Tilt’s Australian business.
The federal government’s Future Fund also has an interest in Powering Australian Renewables.
Another consortium member, Mercury NZ, will acquire the New Zealand business.
The deal values Tilt at about $NZ2.9 billion ($A2.7 billion).
Tilt shares were higher by 14.86 per cent to $7.03.
Mercury NZ shares rose 2.72 per cent to $5.65.
The big four banks had little movement. Westpac was best and rose 0.42 per cent to $24.55.
Afterpay lost 3.38 per cent to $109.58 among the slide in technology shares.
The Australian dollar was buying 77.62 US cents at 1200 AEDT, lower from 77.83 US cents at Friday’s close.