ASX falls; Insignia rallies 5pc; South32 sinks 13pc

Australian shares fell on Monday as energy giants and real estate stocks weighed on the sharemarket.

The benchmark S&P/ASX 200 slid 0.5 per cent, or 39.9 points, to 7931.7 at the closing bell, with nine out of the 11 sectors in the red. The losses on Monday extended a 0.8 per cent decline on Friday and tracked similar sized losses in US markets late last week.

Energy stocks were among the worst performing following a 2.8 per cent drop in the price of Brent Crude last week, its biggest weekly decline since May.

ING head of commodities strategy Warren Patterson said weak demand from China had weighed on oil prices last week, but signs of renewed tension in the Middle East had sparked a partial recovery in trading on Monday.

“The market is trading higher … with rising tension in the Middle East likely providing some support,” he said.

“Following a Houthi drone strike on Tel Aviv, Israel responded over the weekend with an airstrike against the Houthis in Yemen. In addition, out-of-control wildfires in Alberta, Canada, continue to pose a risk to a large amount of oil supply.”

Brent crude added 0.6 per cent to $US83.11 a barrel but remains more than 2 per cent down over the previous two sessions.

The materials sector also came under pressure, declining 0.7 per cent after copper recorded its biggest weekly loss since 2022 and iron ore extended its slump towards $US100 a tonne.

“China’s Third Plenum, a twice-decade policy meeting, wrapped up last week and metal markets had been looking for signs that the government will take action to address the country’s prolonged property slump, the biggest driver for industrial metals demand,” Mr Patterson said.

“Without further stimulus measures, there is little hope for a near-term recovery for the property and construction sector.”

Iron ore futures in Singapore ended the session 0.8 per cent lower at $US103.65 per tonne.

Property stocks also recorded sharp losses, down 1.8 per cent. Sector heavyweight Goodman Group dropped 2 per cent to $36.35 and Dexus lost 1.3 per cent to $6.75.

Woodside was the largest drag on the index, dropping 2.1 per cent to $28.60 after it agreed to buy Gulf Coast Driftwood LNG project near Lake Charles in Louisiana for $US900 million. Woodside CEO Meg O’Neill said the acquisition positioned Woodside to be “a global LNG powerhouse”.

South32 shares slumped 12.6 per cent to $2.99 after the miner recorded a $US389 million ($581 million) impairment and warned about the viability of its Worsley alumina refinery.

Insignia Financial rallied 5 per cent to $2.50. The company said it expected its revenue margins to exceed the company’s already upgraded financial year 2024 guidance. Underlying profit is projected to be between $212 million and $218 million in FY24.

Cash Converters firmed 2.6 per cent to 19.5¢ after the company revealed revenues had jumped more than 11 per cent in Australia over the past year.

Finally, software developer Iress said it expected earnings in the first half of 2024 to jump 50 per cent to around $66 million. Shares rose 9.3 per cent to $9.85.