The Australian sharemarket eased on Tuesday, reversing early gains and extending losses for a third consecutive session, as a commodities-driven sell-off in mining stocks outweighed strength in energy companies.
The S&P/ASX 200 closed just 8.6 points lower at 8,717.1. Despite the modest decline, six of the index’s 11 sectors finished higher.
The Australian bourse remains on track for a third consecutive annual gain, even as investors weigh concerns around elevated valuations and the prospect of further interest rate increases.
Materials stocks led the declines after the precious metals complex sold off sharply overnight.
Major diversified miners were mixed, with Rio Tinto edging up 0.2%, Fortescue adding 0.2% and BHP Group slipping 0.8%.
Gold miners came under heavy pressure, with Northern Star down 2%, Evolution Mining falling 3.4%, Newmont shedding 4.1% and St Barbara tumbling 5%.
Silver miners also retreated sharply. Unico Silver dropped 3.3%, Andean Silver fell 6.3% and Silver Mines slipped 2.2%.
Real estate investment trusts lost ground, with Goodman Group down 1.2%, Charter Hall falling 1.4% and Mirvac easing 0.5%.
The energy sector bucked the broader trend after crude oil prices jumped more than 2% overnight. Santos gained 1.7%, Woodside Energy rose 1.3% and Beach Energy added 0.9%.
On the bond markets, Australian government yields moved higher, with 10-year and 2-year yields both up 0.4% at 4.751% and 4.048%, respectively.
