The key takeaways from the last 24 hours
Energy surge lifts ASX amid geopolitical tension
The Australian share market remained resilient on Monday, navigating geopolitical uncertainty and a sell-off in the United States by edging slightly higher. The benchmark S&P/ASX 200 Index (ASX: XJO) ended the day up just 1 point at 8548.4 points, supported by a strong rally in energy shares following a sharp spike in oil prices and confirmation of a $30 billion takeover of Santos Limited (ASX: STO). Other oil stocks rose in tandem, with Woodside Energy Group Limited (ASX: WDS) up 3 per cent to $26, Beach Energy Limited (ASX: BPT) gaining 1.9 per cent to $1.33, and Karoon Energy Limited (ASX: KAR) climbing 2.3 per cent to $2.03. Meanwhile, uranium shares also spiked after news that the Sprott Physical Uranium Trust (TSX: U.UN) would raise $US100 million to purchase uranium. Shares in Deep Yellow Limited (ASX: DYL) surged 21.2 per cent to $1.60, Paladin Energy Limited (ASX: PDN) rose 15.6 per cent to $7.30, Boss Energy Limited (ASX: BOE) gained 17.7 per cent to $4.30, and Silex Systems Limited (ASX: SLX) soared 23.9 per cent to $4.
Financials and gold weigh on broader market
Despite energy’s strong performance, broader gains were capped by weakness in financials and gold stocks. Commonwealth Bank of Australia (ASX: CBA) slipped 0.03 per cent to $179.40, while National Australia Bank Limited (ASX: NAB), Westpac Banking Corporation (ASX: WBC) and Australia and New Zealand Banking Group Limited (ASX: ANZ) also declined. Among gold miners, Evolution Mining Limited (ASX: EVN) dropped 8 per cent to $8.45 after UBS Group AG (SWX: UBSG) downgraded it to a “sell”, and Northern Star Resources Limited (ASX: NST) fell 8.2 per cent to $20.68 following a downgrade to “neutral”. ASX Limited (ASX: ASX) declined 6.7 per cent to $67.90 after Australian Securities and Investments Commission (ASIC) launched an inquiry into its governance practices. In contrast, Bubs Australia Limited (ASX: BUB) rose 6.3 per cent to 17 cents on US regulatory progress, while Tourism Holdings Limited (ASX: THL) soared 56 per cent to $2.10 after receiving a $471 million buyout offer from BGH Capital and the Trouchet brothers.
Wall Street rises despite Middle East tensions
United States markets rebounded on Monday ahead of the United States Federal Reserve’s policy decision. The S&P 500 Index (NYSE: SPX) rose 0.9 per cent, the Dow Jones Industrial Average (NYSE: DJI) gained 0.7 per cent, and the Nasdaq Composite Index (NASDAQ: IXIC) jumped 1.4 per cent. Hopes of de-escalation between Iran and Israel supported gains, particularly in tech and consumer stocks, with Meta Platforms Inc. (NASDAQ: META), Palantir Technologies Inc. (NYSE: PLTR), and Tesla Inc. (NASDAQ: TSLA) all advancing. Energy shares lagged as oil prices fell. Meanwhile, United States Steel Corporation (NYSE: X)climbed 5.1 per cent after approval of its sale to Nippon Steel Corporation (TYO: 5401), and Roku Inc. (NASDAQ: ROKU) soared 10.4 per cent on a new advertising deal with Amazon Ads, part of Amazon.com Inc. (NASDAQ: AMZN).
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