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FIVE at FIVE AU: Iron ore weighs on ASX; Energy a bright spot

Published 12/06/2024, 04:03 pm
Updated 12/06/2024, 04:30 pm
© Reuters.  FIVE at FIVE AU: Iron ore weighs on ASX; Energy a bright spot
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The benchmark ASX200 Index continued its losses today, closing down 0.5% with all 11 sectors closing in the red with the exception of Energy stocks which gained over 1%.

Despite fresh record highs on Wall Street, the local market has been dragged lower by the recent weakness in iron ore prices that has pushed ASX iron ore miners to multi-week lows, with BHP (ASX:BHP), Rio Tinto (ASX:RIO) and Fortescue (ASX:FMG) all feeling the pain.

Meanwhile, Woodside Energy helped lift energy stocks, with the company's shares jumping 2.7% today to $27.82 for its best day in two months after Macquarie Equities upgraded it to Outperform on the basis that Woodside shares now offer good value relative to its earnings outlook.

Macquarie said Woodside was trading on an estimated dividend yield of 6% with 18% upside to his price target, as the market was "excessively pricing commodity, project and climate risks."

On that topic, the ACCC reports that petrol prices rose to a record high in April after a drop in the March quarter.

ACCC commissioner Anna Brakey said, "Daily average retail petrol prices increased across the five major cities in April following increases in international refined petrol prices and as petrol price cycles in several cities moved towards the highest point of the cycles.”

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