Aussie shares started Friday’s session in the red and has remained near the lows of the day for the opening few hours of trade. The ASX 200 is down 66 points or 0.9% to 7,393 towards midday, following a mixed session on US markets overnight where the Dow Jones and S&P500 saw small losses but the NASDAQ rose slightly.
Friday’s declines have weighed on the market’s weekly performance, before today the ASX 200 was up 54 points or 0.72% but has now fallen into the red for the week. The benchmark index is now down 13 points or 0.2% and is on track for a second consecutive weekly decline.
Today’s losses have also been rather broad with nearly all sectors falling. Resources have been hit hardest with materials down sharply. Commodity prices like gold and iron ore dropped overnight. Iron ore shed 6.1% and has now more than halved, down 54% in value since its record highs in mid-May this year.
Fortescue Metals Group (FMG) is taking the brunt of the losses with the stock down 10.4% today. It has also fallen to the lowest levels in 12 months. BHP Group (BHP) is down 3% while Rio Tinto (RIO) is 3.2% weaker. The three miners are erasing ~32 points off the ASX 200 alone.
Energy and financials are also underperforming and weighing on overall market performance. Meanwhile the IT & industrials sectors are rising. BNPL provider Afterpay (APT) is contributing most to gains with a 3% lift.
In company news, financial software provider IRESS (IRE) is sliding 11% after a potential takeover of the company fell through. EQT Funds Management had offered as much as $15.91 per share for the acquisition but both parties were unable to agree to a transaction. IRE reiterated its segment profit guidance of $164-$168 million for 2021.
CIMIC Group (CIM) announced that its subsidiary, CPB Contractors, has been selected to deliver the Western Sydney International Airport’s airside civil and pavement works. The design and construct contract will generate revenue of ~$265 million to CPB Contractors. CIM shares are down 1.5%.
The Aussie dollar has continued its recent downward trend and has fallen below 73 US cents, now buying 72.83 US cents. The local currency is down ~1% this week.
Published by CommSec