Aussie share market slumps at the end of the first week of 2024

The first week of trading in 2024 has seen the Aussie market drop for the third consecutive day after a key mine temporarily suspended its operations.

The first week of trading in 2024 has seen the Aussie market drop for the third consecutive day, as the mining industry takes a hit following news a key Core Lithium mine temporarily suspended its operations.

The benchmark ASX 200 index dropped by 4.50 points, or 0.07 per cent, to finish the session at 7,489 points on Friday.

Overall, the index lost a total 1.33 per cent since the new trading year began.

The Australian Stock Exchange has ended its first week of 2024. Picture: NCA NewsWire / Christian Gilles

The broader All Ordinaries fell by 0.16 per cent, to close at 7,718 points.

The Australian dollar fell by 0.025 per cent to reach US67.04c.

The worst performing ASX stocks on Friday saw Core Lithium Ltd and Sims Limited drop down by 11.54 per cent and 6.03 per cent respectively.

Core Lithium announced on Friday its Finniss operation in the Northern Territory, about 90km from Darwin, had 280,000 tonnes of ore stockpiles available for processing as of December 31.

In a statement to the ASX, the company confirmed it had temporarily suspended its mining operations following an 85 per cent price decline for spodumene concentrate.

However, Core Lithium CEO Gareth Manderson explained the company’s ore processing would continue to generate revenue in the interim.

Mining operations at Core Lithium’s Grants Open Pit in the Northern Territory have been suspended. Picture: Supplied

“The team has moved at pace to ensure Core’s value is preserved in these tough market conditions,” Mr Manderson said.

“While suspending mining operations is a difficult decision, processing of ore stockpiles will continue to generate revenue and

we will focus on managing our cash reserves prudently.

“We are working to put the business in the best position possible to recommence mining and proceed with BP33 when market conditions improve.

“We understand that this decision is difficult for employees, contractors and some local businesses.

“There is significant prospectivity in the NT both in the Finniss district and in our broader regional tenement holding.

“We will continue to take a longer-term view and explore for new lithium resources.”

The ASX 200 index dropped by 4.50 points on Friday. Picture: NCA NewsWire / Monique Harmer

Overnight on Wall Street, the S & P 500 slipped 16.13, or 0.3 per cent.

It’s the third consecutive day the Wall Street closed with a weak result since the start of the year.

The Dow Jones managed to slightly improve by 10.15 points, or less than 0.1 per cent while the Nasdaq fell by 0.6 per cent.

The mixed market reports follow Wall Street’s weak start to 2024 which carried into a third day.

Originally published as Aussie share market slumps at the end of the first week of 2024