ASX falls on Woolies, mining slump

On Wednesday, the Australian stock market experienced a decline influenced by a challenging night on Wall Street, plummeting iron ore prices, and disappointing financial results from a leading supermarket retailer.

The benchmark ASX 200 index dropped by 0.66%, concluding at 7608.4 points, while the broader All Ordinaries fell 0.65% to finish at 7860 points. Wall Street’s negative performance, particularly in tech stocks led by Nvidia, contributed to the downturn, with the Dow Jones and S&P 500 also closing in the red.

Major mining companies BHP and Rio Tinto saw declines of 2.35% and 1.75%, respectively, mirroring the 6.6% sharp drop in retail giant Woolworths following its reported half-year loss of $781 million. The fall in iron ore prices, down approximately nine percent, added pressure on mining stocks, impacting the market significantly.

Coles, influenced by Woolworths’ results, concluded the day down 4.24%. Only four of the eleven sectors ended positively, with technology, utilities, healthcare, and discretionary sectors posting gains. Despite a standout performance from the technology sector, its limited market weight prevented an overall market upswing.

WiseTech shares surged 11.1% after reporting an eight percent profit increase to $118.2 million. The release of the quarterly wage index, slightly higher than anticipated, may have contributed to dampening market sentiment, potentially impacting rate cut expectations.