Australian Market – XJO slips 1.22% as banks and miners lead broad decline

ASX_Stars
06-07 23:57

$S&P/ASX 200(XJO.AU)$ declined 1.22% to 8,625.1 over the week, as a sharp selloff across the Big Four banks and iron ore miners dragged the index below the 8,650 support level. The weakness was broad-based, with only select defensive names offering refuge.

Industry leaders: Independent Power Producers & Energy Traders (+61.59%) skyrocketed on merchant power demand and renewable project pipelines. Semiconductor Equipment (+27.18%) tracked global AI capex tailwinds. Health Care Technology (+18.89%) advanced on med-tech innovation, while Life Sciences Tools & Services (+11.93%) and Household Products (+10.00%) benefited from defensive rotation.

10 Popular Stocks:

  • $BHP GROUP LTD(BHP.AU)$ -1.72% — The diversified miner pulled back from record highs as copper profit-taking offset resilient iron ore shipments. Notably, BHP's H1 FY2026 copper EBITDA surged 59% YoY to US$8 billion, representing 51% of group underlying EBITDA for the first time in the company's history, though the stock remains up 34% YTD.

    The decline also reflected mounting industrial-relations risk: the Electrical Trades Union and rail workers have voted for protected industrial action at Port Hedland, with the earliest possible commencement by end-June 2026 if negotiations remain unresolved.

  • $COMMONWEALTH BANK OF AUSTRALIA(CBA.AU)$ -2.5% — Continued its May slide, now down over 9% for the month, as mortgage-pricing competition and funding-cost pressures weighed on the sector leader. The banking sector broadly faces headwinds from Westpac's forecast of a 20% fall in iron ore prices to US$83/t by end-2026, which could dampen resource-state economic activity and credit demand.

  • $WESTPAC BANKING CORPORATION(WBC.AU)$ -3.31% — The Sydney-based lender underperformed on deposit competition concerns and weaker implied revenue guidance. The bank's own economics team has forecast a 20% correction in iron ore prices as global supplies increase and Chinese steel production declines, creating a macro overhang for the lender's resource-exposed loan book.

  • $ANZ GROUP HOLDINGS LTD(ANZ.AU)$ -3.07% — The Melbourne-based bank fell on institutional-banking margin compression and commercial-property exposure worries. Like its peers, ANZ remains sensitive to the commodity cycle and tightening SME credit conditions.

  • $NATIONAL AUSTRALIA BANK LTD(NAB.AU)$ -1.98% — Tracked the sector lower despite recent half-year result resilience, with SME credit conditions tightening and commercial property risks continuing to cap sentiment.

  • $FORTESCUE LTD(FMG.AU)$ -7.98% — The pure-play iron ore miner was the week's worst large-cap performer, collapsing on China property-sector weakness and falling 62% Fe prices. The stock was already down approximately 7% year-to-date as of late May 2026, with analyst consensus 12-month price targets of approximately AU$18.85 implying modest downside from current trading levels.

  • $NEWMONT CORP-CDI(NEM.AU)$ -1.66% — The gold miner tracked the yellow metal lower as safe-haven demand moderated. However, Goldman Sachs maintains a constructive medium-term view, forecasting gold to return to near-record highs of around US$5,400/oz by end-2026, approximately 18% above late-April levels of US$4,578/oz, supported by central bank buying averaging 60 tonnes per month.

  • $Block Inc(XYZ.AU)$ -4.94% — The fintech giant (Square) slid on profit-taking after recent strength and concerns over consumer-spending slowdown impacting payment volumes. The company reported Q1 FY26 EPS of US$0.85 versus a US$0.68 estimate, with revenue of US$6.06 billion, yet the stock closed at US$68.15 on 5 June 2026, down 3.87% on the day, reflecting broader fintech valuation compression.

    Analysts maintain an average 12-month price target of US$85.12, implying 24.7% upside from current levels.

  • $TELSTRA GROUP LTD(TLS.AU)$ -4.61% — The telecom incumbent declined on yield-proxy rotation out of defensive names and concerns over mobile pricing competition. Analysts expect Telstra to pay a 20-cent fully franked dividend for FY26, equating to a 4.1% forward yield at recent prices, with UBS and Jarden holding a 12-month price target of AU$4.80 (hold rating), while Macquarie rates it outperform with a AU$5.04 target.

Performance is subjected to market volatility

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