South32 surges on Alcoa deal as Australian banks drag S&P/ASX 200 lower

The $8 billion sale of aluminium assets to US miner Alcoa lifted South32, but heavy selling in the financial sector kept the benchmark index in the red on the first trading day of the financial year.

By Handelsavisen Newsroom · Automated 2026-07-01 05:51 UTC · 1 min read

Australian equities closed slightly lower on Wednesday, with the S&P/ASX 200 index falling 0.1% to 8,774.20.

The modest decline on the first trading day of the new financial year was driven by weakness in the banking sector, which offset strong gains in the industrial metals space.

The deal, valued at more than $8 billion, includes South32’s Worsley Alumina mine near Boddington in Western Australia, marking a significant shift in the company’s asset base.

South32 shares surged following the confirmation of a major strategic transaction.

The Australian miner’s stock rallied as investors digested the agreement to sell its aluminium assets to US giant Alcoa.

The deal, valued at more than $8 billion, includes South32’s Worsley Alumina mine near Boddington in Western Australia, marking a significant shift in the company’s asset base.

While the metals sector provided a bright spot, major banks weighed heavily on the broader index.