Even last week’s big winner, BHP Billiton, could not sustain the steam it gained after announcing plans spin off businesses worth an estimated US$16 billion.
Today, the Australian Securities Exchange (ASX) fell 32.6 points, or 0.6 percent, to 5,598.7 points. The retreat came as a number of resource companies fell on dipping iron ore prices, according to The Sydney Morning Herald. Energy companies also suffered as geopolitical tension between Ukraine and Russia appeared to ease with talk of a truce.
Patersons Securities strategist Tony Farnham told the news outlet, “[t]he geopolitical risks that helped that side of the market sort of died away a bit. There was talk of Ukraine and Russia coming to some sort of truce. That still remains very much to be seen.”
Among companies that lost the most today, Northern Star Resources (ASX:NST) led the pack. Shares of the company, which is involved in gold exploration in Australia, dipped 9.63 percent, or $0.15, hitting $1.46. Regis Resources (ASX:RRL), another firm engaged in Australian gold exploration, also fell, sinking 6.11 percent, or $0.11, to rest at $1.69.
Even the previous week’s big winner, BHP Billiton (ASX:BHP,NYSE:BHP,LSE:BLT) could not sustain the steam it gained after announcing plans to create a new company to handle its aluminum and nickel assets. It lost 1.03 percent, or $0.37, falling to $35.65 today.