Materials sector lagged the ASX 200 on Tuesday

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

| More on:

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.

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

Image source: Getty Images

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

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

Guess which ASX All Ords share is rocketing 20% on lithium battery news

Not all shares have been caught up in the market selloff.

Read more »

Female miner smiling in front of a mining vehicle as the Pilbara Minerals share price rises
Materials Shares

Down 24% in a month, is the Pilbara Minerals share price now a bargain buy?

Could this be a lithium lover's delight or are Pilbara shares fraught with danger?

Read more »

Female ASX travel shares investor with surprised expression drinks a cup of tea while reading the newspaper at her desk
Materials Shares

Guess which ASX lithium share turned one sceptic into a bona fide believer

Green lithium extraction has changed the position of this lithium boom critic.

Read more »

Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices
Broker Notes

Arafura stock sell-off continues, broker tips 35% upside

Recent weakness could be a buying opportunity for investors according to one broker.

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Materials Shares

Piedmont Lithium shares: 150% upside or big short opportunity?

Investors will need to wade through the muck to determine if Piedmont Lithium shares are a good buy right now.…

Read more »

Happy man holding Australian dollar notes, representing dividends.
Dividend Investing

How to generate $20k of passive income from BHP shares

BHP could provide investors with a big pay check in 2023.

Read more »

shocked man with hands over his face with a declining graph in background representing falling CleanSpace share price
Materials Shares

Lynas share price resets 52-week low twice in one week

March has been a shocker for this ASX rare earths share.

Read more »

Female worker sitting desk with head in hand and looking fed up
Materials Shares

Piedmont Lithium share price sinks following short attack response

Piedmont Lithium has responded to a short seller attack on Friday.

Read more »