ASX bloodbath after Trump Truth post – Yahoo Finance Australia
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A Truth Social post led to a boost in the price of oil and a drop in Australia’s sharemarket, as a healthcare heavyweight hit a near nine-year low.
The benchmark ASX 200 dropped 42.60 points, or 0.49 per cent, to 8701.80, while the broader All Ordinaries slid 38.10 points, or 0.42 per cent, to 8942.40.
The Australian dollar added 0.08 per cent to buy 72.38 US cents.
On a poor day of trading, eight of the 11 sectors fell, led by the healthcare sector which was battered 6.47 per cent.
Healthcare stocks were dragged down by sector heavyweight CSL having one its worst days on the market as it slumped 15.96 per cent to $100.75.
In a 90-day review, CSL told the market it would take another $US5bn ($A6.9bn) non-cash impairment.
The first $1.5bn of this was recognised during the first-half results.
Sigma healthcare also slid 0.35 per cent to $2.84, while Fisher Paykel dragged 0.21 per cent to $28.94.
Also weighing on the Australian sharemarket was the price of oil thanks to a social media post by US President Donald Trump, who dismissed a peace deal with Iran.
“I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it – TOTALLY UNACCEPTABLE,” he wrote.
Oil prices immediately responded to this post with Brent Crude surging a further 3.9 per cent to $US105 ($A145) a barrel while West Texas Intermediary firmed 4.6 per cent to $US99.78 ($A138).
eToro lead analyst for APAC Josh Gilbert said oil prices continued to fluctuate depending on news out of the Middle East.
“The core issue is still firmly on the table, which is that the Strait of Hormuz remains largely closed, and every failed negotiation is a reminder that there is no quick fix to the biggest supply disruption in history,” he said.
“We continue to see strong swings in the oil price, and that’s unlikely to change in the near term.”
Australia’s major iron ore miners rose despite this jump in oil prices.
BHP shares closed 0.66 per cent higher to $58.33, Rio Tinto firmed 0.60 per cent to $179.79 and Fortescue closed 0.71 per cent higher at $21.42.
The energy sector also firmed, but this was largely due to the uranium producers as Paladin Energy jumped 5.76 per cent to $13.21, Deep Yellow climbed 4.62 per cent to $1.81, and Boss Energy ascended 6.47 per cent to $1.48.
In other company announcements food, liquor and hardware wholesaler and service provider Metcash leapt 6.57 per cent to $2.92 after telling the market it expects underlying net profits after tax of between $268 to $270m.
oOh! media also rallied 7.1 per cent to $1.35 thanks to an unsolicited takeover request from I Squared Capital.
ANZ shares also fell 0.17 per cent to $35.90 as the banking giant went ex-dividend. It will pay shareholders a partially franked interim dividend of 83 cents per share.
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