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Market Wrap: Mining shares drag ASX lower

Credit: iStock

Local shares faltered today, ending what was a six-day winning streak despite a promising start to the session.

Here’s a quick recap:

  • S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) down 0.6% to 5113 points
  • ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) down 0.7% to 5169 points
  • AUD/USD at US 74.34 cents
  • Iron Ore at US$63.75 a tonne, according to the Metal Bulletin
  • Gold at US$1,267.48 an ounce
  • Brent oil at US$40.30 a barrel

The ASX looked poised to leap again this morning following a huge rally in commodity prices overnight (iron ore up 18.6%). But in a case of irony, the market ended the day lower in a fall led by the miners.

After rising almost 5% earlier, shares of BHP Billiton Limited (ASX: BHP) ended the day 1.8% lower. Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) fared even worse, falling 2.6% and 9.4%.

The junior miners performed well again, though. Atlas Iron Limited (ASX: AGO) gained 40.9% while BC Iron Limited (ASX: BCI) jumped 13.2%.

All four of the banks ended the day in the red, with Australia and New Zealand Banking Group (ASX: ANZ) and Commonwealth Bank of Australia (ASX: CBA) both falling nearly 2%.

Sundance Energy Australia Ltd (ASX: SEA) was one of the worst performers for the day, slipping 14%.

Here are Tuesday’s top stories:

  1. Iron ore ROARS higher – but the resources explosion may not last…
  2. What’s behind the extraordinary trading in Fortescue Metals Group shares?
  3. Iron ore miners are soaring
  4. 5 reasons to stick with your Wesfarmers Ltd shares
  5. Primary Health Care Limited or Sonic Healthcare Limited: Which is the better bet?
  6. Is this the start of another iron ore bull market?
  7. How to profit from the trades of investing legends

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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