ASX slides as BHP drops 1pc; Fortescue plunges 10pc

A sharp sell-off in the mining giants dragged the Australian sharemarket lower on Tuesday.

The benchmark S&P/ASX 200 Index dropped 0.5 per cent, or by 36.4 points, to 7953.2 at the closing bell, with eight out of the 11 sectors in the red. The materials sector was the worst performing, sliding 1.9 per cent. The All Ordinaries fell 0.6 per cent.

Traders are cautious ahead of policy decisions from Japan, the US and the UK this week along with Wednesday’s quarterly inflation report in Australia, which may determine whether the Reserve Bank will lift rates next week.

On the ASX, ndex heavyweight BHP dropped 1.3 per cent to $41.54 on news the mining giant and Lundin Mining will jointly acquire Toronto listed copper miner Filo Corp. BHP’s total cash payment for the deal is expected to be $US2.1 billion ($3.2 billion).

Fortescue Metals tumbled 10.2 per cent to $18.28 after a massive block trade in the shares. The Australian Financial Review’s Street Talk reported JPMorgan was looking for buyers for $1.9 billion of discounted stock after Monday’s closing bell on behalf of an undisclosed institutional investor.

“The ASX200 has fallen today, in a more cautious mood ahead of the start of this week’s data-rich global calendar and as a large line of Fortescue shares traded at a significant discount, weighing on the index,” IG analyst Tony Sycamore wrote in a note to clients.

Mining giant Rio Tinto also fell, declining 1 per cent to $114.66 ahead of its results on Wednesday morning.

Energy stocks were weaker as brent crude slid below $US80 a barrel. Woodside Energy declined 1 per cent to $26.87 and Viva lost 1.9 per cent to $3.18.

Stocks in focus

In company news, Ramsay Health Care dropped 4.3 per cent to $44.93 after announcing the retirement of chief executive Craig McNally at the end of June 2025. The private hospital operator has appointed ex Woolworths Supermarkets managing director Natalie Davis to start as CEO elect in October this year.

Regional Express share shave remained in trading halt pending an announcement after the company asked for its shares to be paused on Monday after EY was hired to advise the board on a restructure, according to the Financial Review.

The airline Regional Express has also stopped selling seats on its jets for the next two weeks, with the future of the airline known as Rex in the balance.

Credit Corp shares rallied 14 per cent to $17.32 and was the best performing stock on the ASX 200 after its earnings guidance met analyst expectations. The debt collecting giant recorded an 11 per cent drop to its underlying net profit after tax (pre-impairment) at $81.2 million for fiscal year 2024.

IGO dropped 4.8 per cent to $5.40 after rallying earlier after it reported higher underlying earnings of $88.2 million in its latest quarterly update. The miner cited an increase in net profit from its Chinese partner Tianqi Lithium Energy Australia and higher spodumene sales at its Greenbushes mine in Western Australia.

And finally, Star Entertainment said it was not aware of any information that could explain the recent trading in its shares. The embattled casino operator rallied over 14 per cent on Monday despite the lack of news. The shares fell 0.9 per cent to 58¢ at Tuesday’s end of trade.