ASX200: Major miners slump on worst half year result since 2020

Australian shares have recorded their fourth straight monthly gain despite mining giants taking a hit after Rio Tinto posted its lowest profits since 2020.

Weaker than expected earnings from Rio Tinto, troubles travelling to the US and tariffs starting to impact listed businesses, all dragged on the ASX during Thursday’s trading.

On a mixed day on the market, the benchmark ASX 200 on Thursday fell 13.60 points or 0.16 per cent to close the month of July at 8,742.80.

The broader All Ordinaries also slipped down 16.40 points or 0.18 per cent to 8,999.00.

Australia’s dollar traded 0.26 per cent higher to 64.63 US cents.

While the overall market dropped, eight of the 11 sectors traded higher, with gains out of the information technology and consumer discretionary sectors offset by the major miners slumping.

Technology and consumer discretionary stocks led the gains. Picture: NewsWire / Jeremy Piper

The falls followed Rio Tinto announcing its earnings update after trading on Wednesday, informing the market that first half profits came in at their lowest point since 2020, on the back of falling iron ore prices.

BHP fell 2.41 per cent to $39.25, Rio Tinto slumped 3.55 per cent to $111.70 and Fortescue slipped 2.31 per cent to $17.77.

IG market analyst Tony Sycamore said even with Thursday’s wobbles, July’s reputation of being a good month for Australian investors continued in 2025.

“As it enters the home straight, it is poised for a 2.35 per cent gain for the month and on track for a fourth straight month of gains made more memorable by its 1580 points (22 per cent) rally from its early April 7169.2 low,” he wrote in an investment note.

Consumer discretionary shares jumped after 11.30am after a surprising bounce in retail sales.

Shares in JB Hi-Fi were up 1.30 per cent to 411.70, Harvey Norman gained 1.05 per cent to $5.80 and Lovisa Holdings jumped 2.15 per cent to $34.14 on the retail figures.

According to the ABS retail sales gained 1.2 per cent for the month of June, its biggest lift since the end of the Covid lockdowns.

AMP economist My Bui said June’s retail strength, which came off the back of end of financial year sales and the release of the Nintendo Switch 2, might not be a sign of a strong economy.

Despite the falls, eight of the 11 sectors gained on Thursday. Picture: NewsWire / Max Mason-Hubers

“In addition, the strong June result has benefited from one-off releases and promotions, which is not necessarily a sign of strength,” she said.

Overall though, Australia’s market was unable to follow a jump on Wall Street, with the S & P 500 futures up more than 1 per cent on the back of major tech companies beating expectations.

Microsoft futures are up 8 per cent and Meta surged 11 per cent as the two tech giants smashed quarterly earnings forecasts.

In company news, shares in Flight Centre slumped 7.3 per cent to $11.94 after the business missed its guidance.

The travel group said a combination of Middle East tensions, additional costs out of Asia and difficult travel conditions in the US added to the unexpected result.

Champion Iron slumped 13.12 per cent to $4.17 after brokers downgraded the miner following a weaker-than expected trading update on Wednesday.

Luxury retailer Cettire shares plunged 23.5 per cent to $0.26 after the business said it was accessing the impacts of US President Donald Trump’s tariffs on the business. Shipments to the United States represent approximately 40 per cent of Cettire’s gross revenue.

Originally published as ASX200: Major miners slump on worst half year result since 2020