Aust shares edge lower as mining, energy take hit

The local share market has finished slightly lower, as mining and energy companies lost ground, ahead of an important update on the health of Australia’s economy.

The benchmark S&P/ASX200 index on Tuesday finished down 23.9 points, or 0.31 per cent, at 7,737.1, while the broader All Ordinaries closed 30 points, or 0.37 per cent, lower at 7,994.1.

“The trend is still up, the trend is still strong, it’s just that we’re having a little bit of a pullback at the moment,” Moomoo market analyst Jessica Amir said. 

“But that doesn’t mean the overall trend is not up.”

The Australian Bureau of Statistics will report first-quarter gross domestic product figures on Wednesday, which are expected to show economic growth of 0.2 per cent in the three months ended March, according to the market consensus.

Partial figures released on Tuesday showed a sharp contraction in the trade surplus, while business inventories rose more than expected, driven by the wholesale trade, mining and retail trade sectors. 

“The key themes for the economy remain unchanged,” Commonwealth Bank’s economics team wrote in an update.

“The household sector, more than half the economy, continues to remain weak and is driving this period of below-trend economic growth.”

Nine of the ASX’s 11 sectors finished lower on Tuesday, while financials and consumer staples both rose by 0.2 per cent. 

Energy was the biggest mover, dropping 1.6 per cent as oil prices fell to a four-month low of $US77.50 a barrel as traders weighed the fallout from the weekend’s OPEC+ meeting. 

While the oil cartel voted to extend production cuts, some restrictions on output were slated to end in September, raising the prospect of higher volumes from major producers, noted Capital.com analyst Kyle Rodda.

Woodside dropped 1.8 per cent to $27.43, Santos fell 2.1 per cent to $7.51 and Beach Energy retreated 2.4 per cent to $1.64.

In the heavyweight mining sector, BHP dropped 1.2 per cent to $44.28, Fortescue finished 1.9 per cent lower at $24.32 and Rio Tinto closed down 0.8 per cent at $127.47.

Goldminers fared better as the precious metal rebounded by $US25 to change hands at $US2,348 an ounce after soft US manufacturing figures bolstered hopes for third-quarter US rate cuts. Northern Star added 1.0 per cent and De Grey Mining climbed 2.3 per cent.

The Big Four banks finished mostly higher, with CBA rising 1.0 per cent to $122.46, NAB adding 0.3 per cent to $34.56 and Westpac growing 0.4 per cent to $26.74. ANZ was the outlier, flat at $28.59. 

Life360 was a spot of green against a mostly red tech sector, rising 1.8 per cent to $15.46 after the location-tracking company announced the launch of its initial public offering for a secondary listing on the Nasdaq.

In cryptocurrency, Australia’s first exchange-traded fund – which holds Bitcoin directly – launched on the Cboe Australia exchange, under the ticker IBTC.

The Monochrome Bitcoin ETF offers Australians a way to invest in the original cryptocurrency in a regulated and compliant manner, Monochrome said.

The Australian dollar meanwhile was near a two-week high against its US counterpart, buying 66.66 US cents, from 66.41 US cents at Monday’s ASX close.

ON THE ASX:

* The benchmark S&P/ASX200 index on Tuesday dropped 23.9 points, or 0.31 per cent, to 7,737.1

* The broader All Ordinaries dropped 30 points, or 0.37 per cent, to 7,994.1.

CURRENCY SNAPSHOT:

One Australian dollar buys:

* 66.66 US cents, from 66.41 US cents at Monday’s ASX close

* 104.29 Japanese yen, from 104.45 Japanese yen

* 61.23 Euro cents, from 61.21 euro cents

* 52.14 British pence, from 52.15 pence

* 107.86 NZ cents, from 108.20 NZ cents