The Australian share market closed lower on Friday, with the ASX 200 dropping 61 points or 0.70 per cent to 8625.10, as slumping iron ore prices and a sharp decline in Asian technology stocks weighed heavily on mining and banking stocks. Despite the overall market fall, the majority of sectors finished in positive territory, with eight of the 11 sectors recording gains.
The All Ordinaries index also lost 61 points or 0.68 per cent to 8855.90, while the Australian dollar slipped 0.08 to buy 71.24 US cents.
Healthcare Stocks Shine
Healthcare shares were the standout performers, rallying more than 3 per cent as a sector. Vaccines giant CSL surged 5.75 per cent to $97.91, Sigma Healthcare added 0.34 per cent to $2.92, and medical imaging provider Pro Medicus rose 4.03 per cent to $165.64. This helped offset some of the weakness in other areas of the market.
Miners and Banks Under Pressure
Major miners and banks were among the biggest laggards of the day. Iron ore futures recorded their fourth consecutive weekly decline, falling another 1.75 per cent to $US101.96 ($A143) per tonne. BHP shares slumped 2.48 per cent to $61.24, Rio Tinto dropped 1.86 per cent to $184.58, and Fortescue Metals declined 2.33 per cent to $20.53.
In the banking sector, Commonwealth Bank fell 1.73 per cent to $160.90, Westpac slid 1.22 per cent to $34.81, National Australia Bank dropped 1.13 per cent to $36.59, and ANZ closed down 1.04 per cent to $34.12.
Global X senior investment strategist Billy Leung noted that the decline was concentrated in the ASX's two largest sectors. "Materials were the biggest drag on the index as commodity-linked stocks came under pressure, while financials also weighed on performance following cautious commentary around the banking sector and housing outlook," he said. "Healthcare was a notable bright spot, helping offset some of the weakness elsewhere, while nearly half of ASX-listed stocks traded higher during the session."
Asian Market Weakness
Adding to the ASX's woes, Asian shares fell sharply. South Korea's benchmark KOSPI plunged 6 per cent due to severe sell-offs in artificial intelligence-related stocks in the US, while Japan's Nikkei 225 lost nearly 1.5 per cent.
Australia's information technology sector managed a slight gain despite the pressure. Codan jumped 1.86 per cent to $43.70, and Life360 added 1.57 per cent, offsetting declines from Xero, which fell 1.41 per cent to $79.27, and WiseTech Global, which dropped 0.82 per cent to $39.81.
Company News
In corporate developments, shares in Nib Group rose 2.49 per cent to $6.59 after announcing the sale of its Australian and New Zealand travel insurance business to Allianz for $50 million.
Gold producer Resolute Mining saw its shares plunge 5.02 per cent to $1.14 following an update from its Syama operation. The miner now expects to produce around 30,000 ounces of gold, below previous guidance of 40,000 to 45,000 ounces.
Perpetual Group added 1.42 per cent to $15.73 after announcing it had acquired a 70.8 per cent stake in Interfi Systems, a privately owned asset servicing technology business based in Victoria.
Treasury Wine Estates continued its gains, trading 0.64 per cent higher to $4.69, after telling the market on Thursday that earnings would be between $480 million and $490 million for the financial year and that its strategy reset would lead to a reduction in the portfolio from 76 to fewer than 30 brands.
Megaport shares led the gains on the ASX 200, rallying 11.26 per cent to $18.48 after emerging from a trading halt and unveiling a fully underwritten $827 million equity raise.
