The Australian share market gave up its record high of 8,000 points on Friday, falling 0.8% as the simultaneous decline followed a decline on Wall Street.
By closing ASX 200 Index The Saudi stock market index fell 0.8%, or 64.9 points, to 7,971.6 points, with some of the weaker sectors including banks, mining companies and technology companies.
This resulted in a 0.1% weekly decline which also saw the ASX 200 hit a new high of 8,057.9 points on Wednesday.
Even Netflix wasn’t worth watching.
The local drop followed a slump on Wall Street, where the Dow, Nasdaq and S&P 500 indexes fell, and even Netflix shares remained flat in after-hours trading after the streaming giant posted a 44% jump in fourth-quarter profit to $2.15 billion and added more than 8 million new subscribers.
Markets now see a greater chance of a Trump re-election, which is seen as inflationary because of policies to extend tax cuts, cut investment ties with China, and increase government spending.
Major Mining Companies Retreat Due to Low Prices
The reaction in Australia was worse as iron ore, gold and copper prices also fell overnight, pushing down prices of major mining companies.
The decline in commodity prices was the result of weaker economic data from China, which showed GDP growth of only 4.7%, with home sales and real estate investment also weak.
China’s steel industry is also entering a summer period when demand typically weakens, keeping downward pressure on prices of major mining companies that make up a large chunk of the ASX 200.
The materials sector was the weakest domestic sector, falling 1.5% due to lower commodity prices.
Gold Mining Companies Lose Some of Their Gains
Gold mining companies, which jumped on Thursday, sold their shares. Evolution (ASX: EVN) It fell 9 cents, or 2.2%, to $4. North Star (ASX: NST) Shares fell 1.5% and Newmont (ASX: NO) Down 2.8%.
The picture was similar to that of the old iron ore miners with BHP (ASX: BHP) 2.1% discount, Fortescue (ASX: FMG) Down 1.9% and Rio Tinto (ASX: RIO) Shares fell 1.7%.
The picture in the banking sector was similarly bleak with shares of leading companies in the sector falling. Commonwealth Bank (ASX: CBA) Down 0.8%, ANZ (ASX: ANZ) Shares fell 1.2%, and NAB shares (ASX: NAB) It also lost 1.2%.
Westpac (ASX: WBC) Westpac shareholders have received good news after Australia’s banking regulator agreed to halve the capital the bank must hold in reserves to $500 million in response to improved risk management at the bank.
However, Westpac shares fell 0.9% to $28.22.
One of the biggest losses in the stock market was a leading land leasing company. Lifestyle Communities (ASX:LIC) Its shares fell 13.9% to $9.51 after controversy erupted over the legality of exit fees it charges people to sell their homes.
Lifestyle has decided to cancel all of its operating profit forecasts and forward guidance, blaming media coverage and uncertainty about its construction business.
Shares in Block Owner PostPay (ASX: SQ2) Facebook shares fell 4.3% to $102.23 after the company announced it was shutting down its peer-to-peer payments business through Cash App in the United Kingdom.
Small Cap Stocks Movement
The small-cap index rose 1.07% during the week to close at 3,032.6 points.
ASX 200 vs Small Caps
Small cap companies that made headlines this week were:
Miramar Resources (ASX: M2R)
Miramar Resources has been revealed. High quality analysis results from initial exploration at the Chain Pool copper, lead, zinc and silver project In the Gascoyne area of Western Australia.
Samples taken from the Joy Helen area yielded significant results, including up to 5.49% copper, 42.0% lead, and 73.48 grams per tonne silver.
CEO Alan Kelly highlighted the diverse potential of the under-explored project, noting the lack of recent exploration despite high-grade mineralisation.
Historical drilling in the 1960s and rock sampling by CRA Exploration and Quadrio Resources revealed significant deposits of lead and copper.
Miramar plans to conduct a systematic rock fragment sampling and soil grid survey program to further investigate mineralization once the exploration license is granted.
Addis (ASX: AI1)
Adisyn entered into Binding Cooperation Agreement with 2D Generation, a Global Semiconductor DeveloperThe partnership aims to combine Adisyn’s expertise in data center management and cybersecurity with 2D Generation’s advanced AI semiconductor solutions.
AI1 President Shen Wei emphasized that the collaboration supports Adisyn’s strategy to enable advanced AI and cybersecurity solutions.
Known for its innovations in semiconductor IP, 2D Generation will focus on creating IP for photonics and systems-on-chips, targeting AI, data centers and high-performance computing.
Wei believes the partnership will enhance high-performance, power-efficient semiconductor solutions that are essential for AI and data centers.
Flynn Gold (ASX: FG1)
Flynn Gold is stepping up exploration at its 100%-owned Golden Ridge project in north-east Tasmania after Discovery of a large-scale system of gold-bearing quartz veins.
Geologists have discovered previously unmapped historic trenches, pits and shafts dating back to the 1930s, just 250 metres north of the historic Trafalgar Mine.
The discovery of several high-grade gold veins has prompted the company to modify its diamond drilling program to test what lies beneath these ancient workings.
Initial assessments indicate that the vein system could expand the Trafalgar gold mineralization footprint to a 500m wide corridor.
Flynn Gold is currently drilling to a depth of 250 metres, and has received government approval to drill additional holes, while also taking soil samples in unexplored areas of Golden Ridge.
Hytera (ASX: HYT)
Hytera has Former Shell Chief Scientist Dr Dirk Smit has been appointed Head of Geophysics. To further its efforts in helium and hydrogen exploration in the United States.
Dr. Smit has over 30 years of experience at Shell, including roles focused on geophysics, energy transition and net zero emissions systems.
He currently works as an energy strategy consultant and holds positions at the University of Oxford, MIT, and the Indian Institute of Science.
HyTerra CEO Avon McIntyre emphasized Dr. Smit’s value to their exploration activities, particularly at the 100% owned Nemaha project in Kansas, where new drilling permits have been awarded.
Dr. Smit joins HyTerra as part of their plan to start a new drilling program this quarter.
Neuronics (ASX: NRX)
Neuronics entered Strategic Partnership Agreement with South32 (ASX: S32) To accelerate copper exploration in Namibia, South32 will finance $15 million over five years to gain up to a 60% equity stake in Noronex’s Humpback-Damara project.
The initial program includes a $3 million commitment to conduct a detailed gravity survey for fill and subsequent drilling in the Fiesta prospect and Damara area.
Neuronics will manage the work and charge South32 an operating fee of 7.5%.
Additionally, South32 and Noronex have formed a strategic alliance to target new copper and base metals projects, with South32 offering $200,000 per year in generation funding and a potential bonus for multiple exploration opportunities accepted.
Noronics’ extensive concessions cover an area of over 8,500 square kilometres in the Kalahari Copper Belt, known for its significant copper deposits.
next week
Locally, there is no doubt that the detailed labor force figures due out on Thursday will be a focus for investors looking for any signs of economic weakness in the face of higher interest rates.
Most experts expect employment to rise by about 20,000 jobs in June, but they also look for the unemployment rate to grow to 4.1% as more job seekers leave the economy amid tough economic times, strong immigration and a rising participation rate.
In the United States, in addition to the ongoing election campaign, some things to watch include new and existing home sales, economic growth figures (GDP), unemployment claims, the trade balance, and personal income and spending.
