The Australian sharemarket hit a fresh intraday six-week low on Wednesday as investors dumped mining stocks amid jitters that the China-backed Simandou iron ore project in Guinea could disrupt global commodity markets.
The dip came as investors mulled the path forward for interest rates after Reserve Bank of Australia governor Michele Bullock warned on Tuesday that there could be more inflationary pressure in the economy than previously expected.
The S&P/ASX 200 index was down 0.4 per cent, or by 38.50 points, to 8775.20 at 12pm AEDT, as further interest rate cuts this cycle are now no longer fully priced in. A fall today would be make it six in the past seven sessions that a loss has been recorded.
Materials were the weakest sector, down 2.4 per cent as BHP dropped 1.2 per cent, Fortescue Metals by 3.5 per cent and Rio Tinto by 2.8 per cent. That followed iron ore losses, as investors worried that China’s plan to develop the Simandou mine at the world’s largest untapped iron ore reserve could disrupt the market.
Technology followed a mega-caps-led Wall Street sell-off amid renewed concerns that valuations have leapt ahead of fundamentals. WiseTech Global declined 1.2 per cent, NextDC by 4.4 per cent and Xero by 1.3 per cent.
Coal miners weighed on energy as Whitehaven Coal fell 2.4 per cent and Yancoal by 1.3 per cent. Woodside, meanwhile, gained 0.4 per cent as it used its 2025 capital markets day to outline plans to boost annual net operating cash flow to around $US9 billion by the early 2030s.
Stocks in focus
In company news, Medibank Private rose 1.5 per cent as it agreed to acquire Better Medical, a network of 61 general practice and medical clinics across Victoria, Queensland, South Australia and Tasmania, for around $159 million.
BlueScope Steel fell 2.4 per cent after Australia’s largest steelmaker named Tania Archibald as its new chief executive to take over from Mark Vassella.
Tyro Payments fell 3.7 per cent as it appointed Nigel Lee as its next chief executive following an extensive global search to replace Jon Davey.
Goodman Group was down 1.8 per cent as it reaffirmed its FY26 operating earnings per share growth target of 9 per cent after a solid September quarter, saying development activity is set to accelerate into the second half as demand for data centres and logistics facilities grows.
Nanosonics fell 3.2 per cent after it announced an on-market share buyback of up to $20 million this fiscal year.
QBE rose 0.2 per cent as it priced a $US300 million issue of fixed-rate resetting subordinated notes due 2037, which will qualify as tier 2 capital under APRA’s framework.
PEXA Group was flat at $15.13 after property transaction volumes rose 6 per cent to 1.05 million in the three months to September, driven by strong refinancing activity and improving conditions in the UK.
Vault Minerals dropped 3.9 per cent as it will transition load and haul operations at its King of the Hills open pit to an owner-operator model from January 1, 2027, after the current mining services contract expires.
