ASX Slips as Financials and Energy Lag, but Brickworks-Soul Patts Merger and Gold Miners Lift Spirits

Key Highlights:

• ASX 200 dips 0.20% to 8,418.2; seven sectors finish in the red
• Brickworks and Soul Patts soar on $14 billion merger news; Brickworks up 21.4%
• BlueScope gains 7.2% on US tariff threat; gold miners shine amid safe-haven flows
• Global uncertainty lingers as Wall Street remains cautious on Trump’s tariff drama

The ASX 200 edged lower on Monday, dipping 0.20% to 8,418.2 as weakness in financials, energy, and materials outweighed strength in select industrials, gold miners, and a historic corporate shake-up. The All Ords slipped 0.21%, while the All Technology Index fell 0.48%. Market breadth leaned negative, with seven sectors in the red.

Financials led the declines, down 0.53%, as heavyweight banks struggled for traction. Energy shed 0.33%, weighed by steady oil prices and cautious global sentiment. Materials dipped 0.29%, dragged by miners like Syrah Resources (-11.48%) and Mineral Resources (-6.49%), while Clarity Pharmaceuticals slumped 11.34% after recent gains.

Amid the subdued mood, a standout narrative emerged: the long-awaited $14 billion merger between investment giant Soul Patts and brickmaker Brickworks. After more than 50 years of cross-holdings, the companies announced plans to merge, with Soul Patts shareholders to receive one share in the new entity for every existing share, and Brickworks investors receiving 0.82 shares per Brickworks share—valuing Brickworks at $30.28, a 10% premium on its last close. Investors cheered the news, sending Brickworks shares up 21.4% to $33.40 and Soul Patts up 12.5%.

The merger, seen as a strategic simplification, underscores how legacy partnerships can evolve into streamlined corporate structures, offering investors clarity and unlocking potential synergies.

BlueScope Steel also surged, gaining 7.2% after former US President Trump threatened to double tariffs on imported steel and aluminium to 50%. With significant US operations, BlueScope is poised to benefit from protectionist policies that could bolster domestic demand.

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Gold miners extended their rally, with the ASX All Ordinaries Gold Index up 1.24%. Meeka Metals jumped 8.62%, while St Barbara added 4.55%, reflecting ongoing safe-haven demand even as spot gold eased 0.84% to US$3,289.40 per ounce.

Global markets remain on edge. The S&P 500 finished Friday almost flat, while the Dow eked out a 0.1% gain and the Nasdaq slipped 0.3%. Wall Street’s mood has been overshadowed by uncertainty over Trump’s tariffs, with fears they could tip the US economy into recession, squeeze corporate profits, and exacerbate inflation-weary households’ burdens.

A notable casualty was Gap Inc., which fell 20.2% despite beating profit and revenue forecasts, after warning that tariffs could add up to US$300 million in costs this fiscal year, an ominous signal for retailers navigating the shifting trade landscape.

Back home, the Australian dollar ticked up 0.4% to buy 64.35 US cents. As June unfolds, investors on the ASX are balancing caution with opportunity, seeking safe havens in gold and critical minerals, while watching corporate shake-ups like Brickworks-Soul Patts as potential bright spots in an otherwise volatile global market.