Materials sector lagged the ASX 200 on Tuesday

Why are ASX materials shares like BHP dragging the ASX 200 down today?

| More on:
A piggy bank balances on a ribbon, indicating a wobbly share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) has had a bit of a topsy-turvy Tuesday. While the ASX 200 finished the day up 0.024% at 7,530.30 pints, it was down as low as 7,488 points earlier in the day (0.5%).

Looking at the ASX 200 sectors that contributed and detracted to today's ASX 200 performance, and one sector jumps out. That would be the ASX materials sector. Materials companies are generally those who dwell in the mining and drilling space.

So the S&P/ASX 200 Materials Index (ASX: XMJ) closed the day at 0.81%, vastly underperforming the broader ASX 200. It happened to be one of the worst-performing ASX sectors today, so investors can largely blame this corner of the ASX 200 for the losses this Tuesday has brought us.

So let's look at how some major ASX materials shares are sailing today.

Some of the biggest ASX materials winners and losers on Tuesday

BHP Group Ltd (ASX: BHP) is the ASX's largest materials company. It's shares finished the day down 0.36% to $42.04 a share.

Another major constituent is Rio Tinto Limited (ASX: RIO). Rio shares were are also down today by 1.80%, trading at $108.70 a share.

Fortescue Metals Group Limited (ASX: FMG) is a real clanger today. Fortescue shares finished the day down 3.12%, and are sitting at $17.88.

But it's not just the big iron ore diggers that are in the red today. Gold miners are also hurting. Newcrest Mining Ltd (ASX: NCM) shares finished the day down at 1.35% at $24.86. Its fellow gold miners Regis Resources Limited (ASX: RRL) and Ramelius Resources Limited (ASX: RMS) fared even worse. Regis lost a nasty 4.60% today to $2.28 a share, while Ramelius shares finished the day down 2.65% to $1.47.

A recent winner is also giving back some of its gains today. South32 Ltd (ASX: S32) shares have been on a bit of a tear in recent weeks. But today, this diversified miner slid by around 1.8% to $3.29 a share. Even so, South32 remains up more than 11% over the past month, so nothing too catastrophic there.

Another recent star performer in Alumina Limited (ASX: AWC) is doing something similar. It's lost 1.94% today at $2.02 a share, but remains up by a very healthy 16% over the past month.

The rare ASX materials shares that are in the green today include Lynas Rare Earths Ltd (ASX: LYC) and Brickworks Limited (ASX: BKW). These companies finished the day up by 1.58% and 1.11% respectively. 

So ASX materials shares are certainly a drag on the ASX 200 today. But yet again, it wasn't too long ago that this sector was repeatedly holding up the rest of the ASX 200. As they say, everyone eventually has their turn in the sun.

Motley Fool contributor Sebastian Bowen owns shares of Newcrest Mining Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Materials Shares

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

How much could $5,000 invested in BHP shares be worth in a year?

Here's what one leading broker believes could happen with this miner's shares next year.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Materials Shares

Bell Potter says this ASX lithium stock could rocket 90%+ in 2025

Let's see why the broker is bullish on this lithium developer.

Read more »

A female employee in a hard hat and overalls with high visibility stripes sits at the wheel of a large mining vehicle with mining equipment in the background.
Materials Shares

Forget Fortescue shares and buy this ASX iron ore stock

Bell Potter thinks this iron ore miner could deliver big returns over the next 12 months.

Read more »

Miner looking at a tablet.
Materials Shares

Are ASX lithium shares prime real estate for value hunters?

Can these stocks recharge returns for investors?

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

Are Rio Tinto shares a buy for its lithium plans?

Let's see what one leading broker is saying about the mining giant.

Read more »

Man with rocket wings which have flames coming out of them.
Materials Shares

Guess which ASX 300 lithium stock is rocketing 20% on huge Volkswagen news

Not all shares are being dragged lower by the market today.

Read more »

Dollar sign in yellow with a red falling arrow in front of a graph, symbolising a falling share price.
Materials Shares

Ouch: The Pilbara Minerals share price just hit a multi-year low

It's been a tough day for lithium investors.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Materials Shares

Big ASX news: CEO buys 2.5 million Sayona Mining shares

This CEO has finally made a big share purchase.

Read more »