AU Morning Wrap: ASX Drops Sharply, BHP Slips 2%

The $S&P 500 Index (.SPX.US)$ rose 1.1 per cent to reach an all-time high. The $Dow Jones Industrial Average (.DJI.US)$ gained about 135 points, or 0.3 per cent, closing at a record for the ninth time this year. The $Nasdaq Composite Index (.IXIC.US)$ added 1.7 per cent. All three indexes notched a fourth consecutive week of gains.

The benchmark $S&P/ASX 200 (.XJO.AU)$ dropped 1.1 per cent, or 85.1 points, and the All Ordinaries also fell by the same amount.

All sectors flashed red. Mining giants $BHP Group Ltd (BHP.AU)$ and $South32 Ltd (S32.AU)$ declined 2 per cent, while $Rio Tinto Ltd (RIO.AU)$ and $Fortescue Ltd (FMG.AU)$ retreated 1.8 per cent. Commodity stocks took a hit across the board, from gold to lithium and uranium.

Energy producers were also given a wide birth with $Coronado Global Resources Inc (CRN.AU)$ and $Beach Energy Ltd (BPT.AU)$ slumping 2 per cent. $Santos Ltd (STO.AU)$ and $Woodside Energy Group Ltd (WDS.AU)$ were also pointing south.

$Argo Investments Ltd (ARG.AU)$: Argo Investments slipped 0.3 per cent after reporting lower profit in the first half-year due to lower dividends from mining giants BHP and Rio Tinto.

$Appen Ltd (APX.AU)$: Appen plunged 5.4 per cent as Ryan Kolln was named chief executive, replacing Armughan Ahmad.

$Collins Foods Ltd (CKF.AU)$: Collins Foods retreated 1.8 per cent. Chief executive Drew O' Malley is taking a three-month leave of absence and former CEO Kevin Perkins, also the company’s largest shareholder, is stepping back in the role.

$Metcash Ltd (MTS.AU)$: Metcash confirmed it is seeking $300 million in a fully underwritten institutional placement to fund the purchase of Quadrant Private Equity' s Superior Food Group, as well as hardware companies Bianco and Alpine Trust. Shares were on trading halt.

$Silver Lake Resources Ltd (SLR.AU)$: Gold miner Silver Lake tumbled 9 per cent on news it was merging with $Red 5 Ltd (RED.AU)$ in a scheme of arrangement under which Red 5 will buy 100 per cent of Silver Lake shares. Red 5 dropped 3 per cent.

Trading Ex-div: $AMCIL Ltd (AMH.AU)$, $BKI Investment Co Ltd (BKI.AU)$, $Qualitas Real Estate Income Fund (QRI.AU)$