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Highlights
- Energy sector weighs down ASX as crude oil prices hit a three-year low.
- Gold miners gain amid rising haven demand and steady gold prices.
- Star Entertainment (ASX:SGR) edges closer to a rescue deal with investors.
The Australian stock market faced downward pressure on Thursday as energy stocks fell sharply, dragging the S&P/ASX 200 down by 0.7%, or 57.2 points, to close at 8083.90. The All Ordinaries also dipped by 0.6%. All 11 sectors were in the red, with energy taking the biggest hit amid concerns over new US tariffs affecting crude oil imports.
A sharp decline in crude oil prices to a three-year low weighed on the sector. Brent crude slipped below $70 per barrel following concerns that US tariffs on Canadian and Mexican imports would weaken demand. This comes as OPEC+ plans to increase supply, adding further pressure to oil prices. As a result, major players in the sector suffered, with Woodside Energy (ASX:WDS) falling 5.1% after trading ex-dividend. Santos (ASX:STO) declined 1.8%, while Ampol (ASX:ALD) slipped 2%.
Despite a rally on Wall Street after the US administration announced a temporary pause on automotive tariffs, the broader market sentiment remained cautious. The Australian dollar climbed above US63¢ as the US dollar weakened following investor concerns over the economic impact of tariffs.
The bond market also experienced turbulence, with Australia’s 10-year yield jumping to 4.47%. This was fueled by a global bond sell-off after German political parties signaled a move toward loosening fiscal restrictions, prompting investors to adjust their positions.
Gold miners, on the other hand, saw gains as gold prices held above $2,900 per ounce. Increased investor demand for safe-haven assets amid market uncertainty benefited stocks such as South32 (ASX:S32), which rose 3.9%. Bellevue Gold (ASX:BGL) surged 6.9%, while West African Resources (ASX:WAF) rallied 11.4% on strong profit and gold sales for 2024.
In corporate developments, Star Entertainment (ASX:SGR), currently suspended from trading, is close to finalizing a deal with Hong Kong investors to divest its Brisbane-based casino and avoid voluntary administration.
Retailer Myer (ASX:MYR) saw a 5.3% rise as investor sentiment improved following optimistic projections about the company’s growth potential under new leadership.
Meanwhile, Amcor (ASX:AMC) slid 1.7% after announcing a restructuring plan post its $13 billion merger with Berry, hinting at a potential CFO appointment. Air New Zealand (ASX:AIZ) dropped 2.7% following CEO Greg Foran’s planned departure in October after five years at the helm.
New entrant Mesoblast (ASX:MSB) had a challenging debut in the ASX 200, slipping 8.3% as investors adjusted to the stock’s new positioning in the index.
Overall, while energy stocks dragged the market down, gold miners provided a bright spot, and corporate movements remained in focus as investors assessed broader market conditions.
