The Australian share market lost ground

The Australian share market lost ground on Tuesday, weakened by a fall in health stocks. The benchmark S&P/ASX 200 Index (ASX: XJO) fell 63.1 points, or 0.7 per cent, to 8,896.2, while the broader All Ordinaries Index (ASX: XAO) shed 59.7 points, also 0.7 per cent, to 9,173.8. Four of 11 local sectors weakened over the day, led by healthcare, while telecommunications was the best-performing sector.

The healthcare index plunged 8.4 per cent, battered by biotech giant CSL Limited (ASX: CSL)’s 16.9 per cent slide to $227.79, in the wake of the company’s announcement that it will cut up to 3,000 jobs and spin-off its influenza vaccine arms, CSL Seqirus (Private), in a strategy to shave up to $550 million off its total costs. It was CSL Limited (ASX: CSL)’s biggest one-day fall since the company listed on the ASX in 1994, and it wiped about $20 billion off its market capitalisation. CSL Limited (ASX: CSL) said it could potentially raise $17 billion through the spin-off of CSL Seqirus (Private), one of its three business units.

Mining heavyweight BHP Group Limited (ASX: BHP) reported a 26 per cent slide in full-year earnings, to a five-year low, forcing it to reduce dividends to the lowest level in eight years. The US$9 billion (A$13.9 billion) full-year net profit was weighed down by weak commodity prices. BHP Group Limited (ASX: BHP) said it would delay a multi-billion-dollar expansion of its South Australian copper division and warned that Queensland coal jobs could be cut. BHP Group Limited (ASX: BHP) announced it has agreed to sell its Brazilian gold and copper assets in a transaction valued at US$465 million (A$715.4 million). BHP Group Limited (ASX: BHP)’s share price took the bad news well, rising 65 cents, or 1.6 per cent, to $42.12. Elsewhere in the big miners, Rio Tinto Limited (ASX: RIO) softened 25 cents, or 0.2 per cent, to $113.05; and Fortescue Ltd (ASX: FMG) eased 3 cents, or 0.2 per cent, to $19.69.

Canadian uranium project developer NexGen Energy Ltd (TSX: NXE) gained 25 cents, or 2.4 per cent, to $10.83; gold producer Greatland Resources Limited (LSE: GGP) added 12 cents, or 2.2 per cent, to $5.47; rare earths star Lynas Rare Earths Limited (ASX: LYC) put on 32 cents, or 2.2 per cent, to $15.09; mineral sands heavyweight Iluka Resources Limited (ASX: ILU) advanced 12 cents, or 1.9 per cent, to $6.59; and gold miner Westgold Resources Limited (ASX: WGX) lifted 4 cents, or 1.3 per cent, to $3.18.

Energy was the second-biggest loser among the sectors, falling 2.2 per cent, with Woodside Energy Group Ltd (ASX: WDS) down 75 cents, or 2.8 per cent, to $26.14; Santos Limited (ASX: STO) off 21 cents, or 2.6 per cent, to $7.75; and Whitehaven Coal Limited (ASX: WHC) declining 15 cents, or 2.2 per cent, to $6.64.

The big banks were all higher, with National Australia Bank Limited (ASX: NAB) up 31 cents, or 0.8 per cent, to $40.54; ANZ Group Holdings Limited (ASX: ANZ) gaining 20 cents, or 0.6 per cent, to $32.77; Westpac Banking Corporation (ASX: WBC) 24 cents to the good, or 0.7 per cent, to $37.31; and Commonwealth Bank of Australia (ASX: CBA) rising 86 cents, or 0.5 per cent, to $171.05.

The best-performed sector on the day was telecommunications services, which posted a 0.7 per cent increase, powered by job-finding website operator Seek Limited (ASX: SEK), which surged $2.05, or 8 per cent, to $27.72 after reporting its result.

In the US, the broad S&P 500 Index (NYSE: SPX) lost 37.78 points, or 0.6 per cent, to 6,411.37; but the 30-stock Dow Jones Industrial Average (NYSE: DJI) managed a 10.45-point rise, to 44,922.27. The Dow Jones Industrial Average (NYSE: DJI) touched a fresh record high during the session, helped by a surge in Home Depot Inc (NYSE: HD), which rose 3.2 per cent.

The tech-heavy Nasdaq Composite Index (NASDAQ: IXIC) was down 314.82 points, or 1.5 per cent, to 21,314.95. Some of the mega-cap tech stocks struggled, with NVIDIA Corporation (NASDAQ: NVDA) down 3.5 per cent, Advanced Micro Devices Inc (NASDAQ: AMD) off 5.4 per cent and high-flying software stock Palantir Technologies Inc (NYSE: PLTR) retreating more than 9 per cent, making it the S&P 500 Index (NYSE: SPX)’s worst performer.