Australia’s share market is set to finish the week with little gains as a mining stock rout drags on.
The S&P/ASX200 fell 89.4 points by midday on Friday, down one per cent, to 8,821.7, as the broader All Ordinaries slipped 88.3 points, or 0.97 per cent, to 9,038.5.
The top-200 is up 0.14 per cent since Monday, after a US-Iran peace deal-fuelled rally buckled in the second half of the week.
BHP led the basic materials sector lower, falling 3.7 per cent after the mining giant flagged a $US2 billion ($A2.9 billion) cost blowout relating to its Canadian Jansen potash project.
“BHP continues to invest in its long-term growth strategy,” the miner’s Americas chief executive-elect Brandon Craig said.
“Jansen is an important pillar of BHP’s strategy and will deliver exposure to a future facing commodity with strong demand fundamentals and portfolio diversification benefits.”
Gold stocks have continued their decline with the precious metal falling below $US4,190 ($A5,978) an ounce as the US dollar continued to firm after a more hawkish than expected debut from new Federal Reserve chair Kevin Warsh this week.
Battery minerals producers also slumped, with PLS Group (formerly Pilbara Minerals) tumbling six per cent after approving $175 million in pre-final investment decision spending on its P2000 Pilgangoora operation.
The broader fall in materials came as the Australian Bureau of Statistics reported mining operating profits in the 2025 financial year fell $32.9 billion (19.1 per cent) to $138.8 billion, following a fall of $71.5 billion (-29.4 per cent) in 2023/24.
The energy sector fell 1.2 per cent despite oil prices finding support at levels on par with the first days of the US-Iran conflict.
Shipping traffic in the Hormuz Strait has resumed after the two nations stuck a preliminary peace deal this week, but the agreement could already be on shaky ground after Israel rejected calls to withdraw its troops from southern Lebanon.
The heavyweight financials sector is on track for a second session of losses, down 0.6 per cent on Friday and tracking with weakening risk sentiment.
Unsurprisingly, defensive sectors outperformed the bourse, with health care and consumer staples up 1.2 per cent and 0.8 per cent respectively.
In company news, Skycity Entertainment shares soared more than 17 per cent in early trade after copping a $21 million penalty for breaching anti-money laundering and counter-terrorism financing obligations at its Adelaide Casino.
CommBank has appointed Victoria Ledda as group chief information officer, and Rodrigo Castillo will take over as chief technology officer from July 1.
The Australian dollar is buying 70.05 US cents, down from 70.38 US cents on Thursday at 5pm.