ASX on four-day losing streak

The benchmark index closed 0.5 per cent lower at 7464.6 while the All Ordinaries Index fell 0.46 per cent to 7735.3.

CommSec analyst Steve Daghlian said the fall was partly due to a negative Wall Street lead after US Federal Reserve minutes suggested the central bank was considering starting the process of reining in some of its stimulus measures this year.

“While having a rough time at the moment, we did hit four record highs last week – the only problem is there are records elsewhere and that’s in that Covid space, with NSW coming out with 681 cases over the past day. That’s the worst ever,” Mr Daghlian said.

“And Victoria, which is in its sixth lockdown, has more than doubled the number of cases in a day to 57.”

BHP, Rio Tinto and Fortescue slumped after the iron ore price fell by 4 per cent.

“That means that the price of Australia’s largest export has fallen by 34 per cent since hitting record highs just three months ago,” Mr Daghlian said.

“That’s been attributed partly to concerns that demand could actually fall in China, with some environmental restrictions put in place.”

OMG chief executive Ivan Tchourilov said inventories had been building up in China and continued efforts from the government to curb steel production meant a bleak outlook for iron ore producers.

BHP plunged 6.35 per cent to $44.67 – its second day of heavy falls – in the wake of its plan to offload its petroleum division to Woodside and amid concerns its sharemarket listing unification plan will benefit British investors over Australian investors.

Rio Tinto dived 5.74 per cent to $107.17 and Fortescue tanked 6.15 per cent to $20.13.

The West Australian government announced Rio Tinto would be involved in a six-week trial starting next month at Perth Airport, where its fly-in fly-out workers will be able to access a pop-up Covid-19 vaccination clinic operating three days a week.

WA Health Minister Roger Cook says the trial will also be expanded to mining locations in the Pilbara for both workers and community members, with discussions underway with other major miners including BHP and Fortescue.

The airport trial is expected to provide 1000 doses a week initially and Rio Tinto workers will need to book their jab via the company.

As the electric vehicle boom drives demand for battery commodities, nickel producer Western Areas confirmed rumours IGO was eyeing a takeover, sending its shares flying 12.9 per cent to $2.80, but IGO dropped 5.78 per cent to $8.96.

“More rumours that the company will only be taking offers $200m above its current market cap caught on like wildfire, the result of which we’re seeing in its new market value,” Mr Tchourilov said.

“The price of nickel is hot at the moment and more demand is forecasted, meaning the company is ripe for a high value takeover.“

Penfolds owner Treasury Wine Estates booked a 5.5 per cent lift in full-year net profit on a constant currency basis, with strong performance by its premium range in the US – including the Snoop Dogg-marketed 19 Crimes range aimed at younger drinkers – helping to ease the pain from slashed shipments to China following its imposition of punitive import duties on Australian wine.

TWE declared a final dividend of 13 cents per share, up more than 62 per cent on the previous final dividend, but its shares dipped 1.5 per cent to $12.50.

Gold miner Newcrest delivered a record full-year profit thanks to strong production together with higher gold and copper prices.

Newcrest declared a final dividend of 40 US cents per share, 129 per cent higher than the prior year, bringing the 2020-21 payout to a record 55 US cents per share.

Shares in Newcrest lifted 1.07 per cent to $25.54.

Casino operator Star Entertainment posted a 5.2 per cent dip in full-year net profit, saying Covid-related shutdowns, restrictions and border closures substantially dented revenues, causing its dividend to remain suspended.

Still, shares in Star jumped 6.79 per cent to $3.62.

Sharemarket operator ASX Ltd reported a 3.6 per cent fall in statutory full-year profit, but its shares gained 2.32 per cent to $83.53.

“Strong listings and equity market activity, due in part to an ongoing surge in retail trading, were tempered by the effects of the RBA’s current policy settings on both short-end futures volumes and interest income,” chief executive and managing director Dominic Stevens said.

Bricks-and-mortar retailer The Reject Shop reported a big jump in full-year net profit, despite the impact of lockdowns, saying cost management progress had been pleasing.

The company said leases for more than 30 of its 48 stores in large shopping centres and CBDs would expire within the next 18 months and would be closed then replaced with new stores “in more attractive neighbourhood and strip locations” if landlords don’t drop rents to reflect the fall in foot traffic.

Shares in The Reject Shop soared 16.67 per cent to $5.67.

Another strong performer was online marketplace Redbubble, which prints art and designs on products on demand, rocketing 18.95 per cent to $3.64.

The company booked record full-year results after posting a loss for the previous financial year, saying artists earned $104m in revenue in 2020-21 – the largest ever annual amount.

Gourmet food company Maggie Beer Holdings also returned to full-year profitability after acquiring and integrating e-commerce business Hampers & Gifts Australia, sending its shares 2.44 per cent higher to 42 cents.

It also sells products through grocery stores and says its cheese range was the best performing category, with 50 per cent growth.

ANZ eased 0.39 per cent to $28.36, Commonwealth Bank gave up 0.55 per cent to $99.22, National Australia Bank backtracked 0.43 per cent to $27.51 and Westpac inched one cent higher to $25.82.

The Aussie dollar was fetching 71.89 US cents, 52.42 British pence and 61.52 Euro cents in afternoon trade.

Originally published as Australian sharemarket suffers fourth straight day of losses, dragged lower by iron ore miners as commodity price slumps