Published On: February 6th, 2024
The Australian share market may have seen its highs and lows, but the stock enthusiasts did not expect the record that it made this week. It all happened when the giants dealing with the mineral resources ASX witnessed a drop in their shares compared to the other sectors. This is unlike last week when the share market saw a record high overnight, with the S&P/ASX 200 rising to 1.5 per cent or 111.2 points like all the other sectors except utilities.
Mineral Resources ASX News
Coming back to the present context, the mineral resources ASX share price dropped to nearly 1 per cent. Moreover, all other sectors except healthcare rose to 0.1 per cent. This is the primary reason the Australian share market retreated from last week’s record-high numbers.
Meanwhile, the materials sector’s points came down to a mere 2.6 per cent, with the utilities and energy stocks following behind at 1.5 per cent and 1.1 per cent respectively.
Who Are the Big Cap Winners?
Despite the present fluctuation in the market, there were a few sectors that performed well on the charts. This includes the healthcare sector, the only one in green, while the others got marked in red for sinking their numbers.
As a part of the healthcare sector developments, CSL and ResMed made gains of 0.2 and 0.3 per cent, respectively. Johns Lyng Group, a building and restoration services company, was the best performer in the share market. Its share comprised a whopping 5.5 per cent this time. It was followed by the respective Pro Medicus and Healis shares, which were 3.7 per cent and 2.1 per cent, respectively.
Big Cap Losers, Including Mineral Resources Stock ASX
As mentioned earlier, all the mining giants, including mineral resources ASX 200, were in red on Monday. Their BHP shares were surprisingly 2.4 per cent lower. Then came Rio Tinto, whose shares went down to 2.2 per cent. It was closely followed by Fortescue Metals, with a share percentage of 2.8.
Silver Lake Resources was the worst-performing corporation because the company shed 11.5 per cent of its share price at the beginning of the week. Liontown Resources followed soon after, losing 8.2 per cent of its share price. The last one in the row was Ramelius Resources, whose shares went as low as 7.5 per cent.
The Fall of Mineral Resources ASX and the Market Lowdown
The banking sector also witnessed a mix of results this Monday as the Australian share market faced the most significant fluctuation at the beginning of the year. Commonwealth Bank’s shares went down to 0.3 per cent. On the other hand, ANZ had to stop at a share percentage of 0.2 per cent. Westpac and NAB followed it with respective share percentages of 0.5 and 0.3 for the week.
So, what was the reason behind the broader index decline? It all happened when Metcash announced its decision regarding the three new acquisitions, which include a food distributor and two hardware businesses.
Regarding the mineral resources ASX, its stocks have come down by around 17% over the past month. Despite the fluctuations, it remains an essential consideration for the Australian share market. MinRes has also witnessed a modest net income growth of 8.7% over the past five years. However, its reported growth was around 22% lower than the overall industry net income growth, other than what stockbrokers usually want to see. The recent fluctuation in the share market has once again raised questions on the chances of the mineral resources stock ASX making it to the top. However, the hopes are still on because the latest industry analyst forecasts reveal that the company’s earnings are expected to accelerate soon.