The Australian stock market edged lower in afternoon trading on Wednesday, with the benchmark S&P/ASX 200 falling 24.8 points, or 0.3%, to 7,987.1 at 2:17 pm. Losses in the banking and tech sectors outweighed a strong rally in lithium miners, keeping seven of the 11 market sectors in the red.
Commonwealth Bank led the decline among banks, slipping 1.9%, while ANZ, National Australia Bank, and Westpac each fell by a similar margin. The drop in bank stocks came after record highs on Tuesday.
Tech shares also struggled, despite a rebound in U.S. tech stocks that lifted the Nasdaq and S&P 500 overnight.
NextDC led the sell-off in Australia, falling 6.9% to $16.61 after a $550 million capital raise for expansion into new Asian markets. WiseTech and Xero also slipped, down 1% and 1.2%, respectively.
Energy stocks were hit by a weaker oil price, as Brent crude futures dipped below $US70 per barrel for the first time in over two years, driven by robust supplies and demand concerns. The energy sector dropped 1.8%.
However, mining stocks performed better, buoyed by rising iron ore prices. BHP rallied 1.4%, while Fortescue surged 2.5% as Singapore iron ore futures climbed back above $US92 per tonne.
The most significant gains were seen in the lithium sector, with Pilbara Minerals and Liontown Resources jumping 14% in afternoon trade. The surge followed reports that Chinese EV battery manufacturer CATL had suspended operations at two lepidolite mines.
Mineral Resources (MinRes) led the charge, soaring 17% after receiving approval from Australia’s Foreign Investment Review Board for the sale of a 49% stake in its Onslow Iron haul road, bolstering the stock's performance.