A sell-off in the mining sector triggered by a flagging iron price weighed on the sharemarket into the close, while most investors stayed largely on the sidelines amid an escalation in the Israel-Iran conflict.

The benchmark S&P/ASX 200 Index fell 10.1 points, or 0.1 per cent, to 8531.2 on Wednesday after the gauge briefly traded in the black.

Eight of the 11 industry groups edged higher, but the gains were offset by a 1.6 per cent drop in the materials sector.

Hugh Dive, chief investment officer at Atlas Funds Management, said markets had only just “woken up” to the sliding iron ore price on Wednesday.

“We’re reading that China is exporting lots of steel which suggests they’re not using it internally and the steel mills aren’t very profitable,” he said.

“So we’ve been a bit surprised about how well the iron ore names have held up given the iron ore price has weakened from its more than $US100 level at the start of the month. The market only seemed to wake up to it today.”

Miners retreat

On the ASX, the iron ore majors fell as the price for the steelmaking ingredient retreated below $US93 a tonne in Singapore, spurred by a seasonal slowdown in demand and signs that Chinese mills are curbing steel output.

Citi has also downgraded its 12-month iron ore price forecast to $US90 a tonne. BHP dropped 1.2 per cent to $36.86, Fortescue 4 per cent to $15.03, and Mineral Resources 4.6 per cent to $22.59.

Elsewhere, investor reaction was more muted on the ASX. This is despite a drop in US stocks overnight, and a five-month high for oil prices, after Donald Trump demanded an “unconditional surrender” from Iran, raising fears that America is on the verge of joining Israel’s attack on the Islamic Republic.

A batch of weak economic data also weighed, with US futures pointing to further selling on Wednesday ahead of the US Federal Reserve decision on interest rates.

On the ASX, profit-taking hit the gold stocks as the price of the precious metal failed to push much higher despite the heightened geopolitical risk. Northern Star fell 2 per cent to $20.58 and Evolution slid 3.6 per cent to $8.15.

On the other side of the ledger, investors continued to buy uranium producers. Boss Energy rose 4.3 per cent to $4.66 after announcing its Honeymoon uranium operation in South Australia met first-year production guidance. Deep Yellow rose 3.9 per cent to $1.73 ahead of an anticipated spike in spot prices for the nuclear fuel.

Stocks in focus

The tech sector was also strong, climbing 1.1 per cent and buoyed by Wisetech’s 1.5 per cent advance to $108.93. TechnologyOne jumped 2 per cent to $41.15.

In corporate news, data centre operator NextDC slipped 1 per cent in early trade before recovering in the afternoon session, closing up 0.2 per cent at $14.01. The company has tied up a new $2.2 billion bank facility to refinance its existing debt.

Ooh!Media jumped 3.6 per cent to $1.74 after UBS upgraded the outdoor advertising stock to “buy” with a price target of $2, implying nearly 20 per cent upside from current levels.

And Cettire rallied 10.5 per cent to 32¢. That’s after the shares plunged 31 per cent in one session last week, from 47¢. But Atlas’ Dive warned retail investors against buying the dip.

“You are potentially catching a falling knife buying Cettire going into reporting season,” he said.

That’s a wrap. Thanks for following the AFR’s live ASX 200 coverage this Wednesday, June 18, 2025. We will have more coverage tomorrow.