Materials sector lagged the ASX 200 on Tuesday

Why are ASX materials shares like BHP dragging the ASX 200 down today?

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) has had a bit of a topsy-turvy Tuesday. While the ASX 200 finished the day up 0.024% at 7,530.30 pints, it was down as low as 7,488 points earlier in the day (0.5%).

Looking at the ASX 200 sectors that contributed and detracted to today's ASX 200 performance, and one sector jumps out. That would be the ASX materials sector. Materials companies are generally those who dwell in the mining and drilling space.

So the S&P/ASX 200 Materials Index (ASX: XMJ) closed the day at 0.81%, vastly underperforming the broader ASX 200. It happened to be one of the worst-performing ASX sectors today, so investors can largely blame this corner of the ASX 200 for the losses this Tuesday has brought us.

So let's look at how some major ASX materials shares are sailing today.

A piggy bank balances on a ribbon, indicating a wobbly share price

Image source: Getty Images

Some of the biggest ASX materials winners and losers on Tuesday

BHP Group Ltd (ASX: BHP) is the ASX's largest materials company. It's shares finished the day down 0.36% to $42.04 a share.

Another major constituent is Rio Tinto Limited (ASX: RIO). Rio shares were are also down today by 1.80%, trading at $108.70 a share.

Fortescue Metals Group Limited (ASX: FMG) is a real clanger today. Fortescue shares finished the day down 3.12%, and are sitting at $17.88.

But it's not just the big iron ore diggers that are in the red today. Gold miners are also hurting. Newcrest Mining Ltd (ASX: NCM) shares finished the day down at 1.35% at $24.86. Its fellow gold miners Regis Resources Limited (ASX: RRL) and Ramelius Resources Limited (ASX: RMS) fared even worse. Regis lost a nasty 4.60% today to $2.28 a share, while Ramelius shares finished the day down 2.65% to $1.47.

A recent winner is also giving back some of its gains today. South32 Ltd (ASX: S32) shares have been on a bit of a tear in recent weeks. But today, this diversified miner slid by around 1.8% to $3.29 a share. Even so, South32 remains up more than 11% over the past month, so nothing too catastrophic there.

Another recent star performer in Alumina Limited (ASX: AWC) is doing something similar. It's lost 1.94% today at $2.02 a share, but remains up by a very healthy 16% over the past month.

The rare ASX materials shares that are in the green today include Lynas Rare Earths Ltd (ASX: LYC) and Brickworks Limited (ASX: BKW). These companies finished the day up by 1.58% and 1.11% respectively. 

So ASX materials shares are certainly a drag on the ASX 200 today. But yet again, it wasn't too long ago that this sector was repeatedly holding up the rest of the ASX 200. As they say, everyone eventually has their turn in the sun.

Motley Fool contributor Sebastian Bowen owns shares of Newcrest Mining Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Materials Shares

A smiling man wearing a collared blue shirt and black jacket holds a piece of black rock containing rare earths.
Materials Shares

This major update just sent Lynas shares higher today

Lynas shares rise after announcing a key rare earth production milestone.

Read more »

A man looking at his laptop and thinking.
Materials Shares

Core Lithium shares tumble after $120m capital raising for Finniss restart

It won't be long until the company is producing lithium again.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Materials Shares

Top broker names 3 ASX rare earths stocks to buy

Let's see which stocks could benefit from strong prices.

Read more »

Business people discussing project on digital tablet.
Materials Shares

What does a change of CEO mean for the BHP share price?

The BHP Group Ltd (ASX: BHP) share price is rising on Wednesday. In afternoon trade, the mining giant's shares are…

Read more »

A happy construction worker or miner holds a fistful of Australian dollar notes.
Materials Shares

$10,000 invested in BHP shares 5 years ago is now worth…

Was it a good idea to buy the mining giant's shares five years ago?

Read more »

A white EV car and an electric vehicle pump with green highlighted swirls representing ASX lithium shares
Materials Shares

This ASX lithium stock is slipping, but brokers see 135%+ gains

Analysts remain highly bullish on the long-term outlook.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Rio Tinto shares charge higher on big copper news

The Resolution Copper project was given a major boost today.

Read more »

Stock market crash concept of young man screaming at laptop on the sofa.
Materials Shares

Why the IperionX share price just crashed 22% today

Investors dump IperionX shares after its recent results spark heavy selling.

Read more »