AUS
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UK
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Highlights
- Tech and mining stocks lifted ASX on Monday despite energy sector weakness.
- Iron ore price gains supported key miners like BHP, Rio Tinto, and Fortescue.
- Energy stocks faced declines, tracking a dip in global oil prices.
Australian shares opened on a steady note on Monday, with the S&P/ASX 200 index edging slightly higher by one point to 8212.3. The Australian stock market was balancing gains in technology and mining stocks with a decline in energy stocks, reflecting muted movements from Wall Street over the weekend. After experiencing a 0.9 percent dip last week, its first weekly decline since early September, the index remained relatively flat.
Among the ASX’s eleven sectors, nine posted gains, led by technology and materials. Megaport surged nearly 4 percent, continuing its strong performance, while Life360 saw a 1.7 percent increase. Mining stocks were also well-supported, with BHP (ASX:BHP) rising by 0.9 percent, Rio Tinto increasing by 1.2 percent, and Fortescue Metals Group advancing by 1 percent. The strong momentum in mining stocks was partly driven by a 1.8 percent rise in iron ore prices on Friday, which bolstered investor sentiment for key players in the resources sector.
The banking sector showed mixed results. ANZ Group Holdings declined by 0.5 percent after revealing a $196 million one-off accounting charge linked to its acquisition of Suncorp. This charge is expected to impact the company’s second-half statutory profit, highlighting the complexities of the acquisition process.
On the other hand, energy stocks came under pressure as global oil prices softened. Woodside Energy dipped by 1 percent, Beach Energy fell by 0.8 percent, and Santos Ltd. dropped by 0.4 percent. The decrease in oil prices followed restrained strikes by Israel over the weekend, which avoided targeting oil and nuclear infrastructure in Iran. This impacted both Brent Crude and West Texas Intermediate prices, which saw declines of over 4 percent, closing at $72.9 and $68.67 respectively.
In stock-specific moves, WiseTech Global resumed its upward trend, rising by 0.7 percent following the recent resignation of founder and CEO Richard White. Despite a 12.7 percent surge on Friday, WiseTech experienced its sharpest weekly decline in over a year last week, a signal of potential volatility amid leadership changes.
Among other notable stocks, Mineral Resources Ltd. slid nearly 2 percent after the company announced that it would release a review concerning the conduct of its managing director Chris Ellison. Additionally, Temple & Webster recorded a 4 percent drop, despite reaffirming its margin guidance for FY25. In the lithium sector, IGO Ltd. fell 0.4 percent, as its joint venture partner, Tianqi Lithium Energy Australia, stated it would hold off on dividend payments due to current market conditions for lithium products like spodumene and lithium hydroxide.
Meanwhile, Metcash Ltd. continued its downward trend, declining by 2.2 percent, even after securing an extension of its supply agreement with Drakes Supermarkets in Queensland until 2034. This extended partnership aims to reinforce Metcash's foothold in the grocery distribution sector, though it did not immediately translate into gains for the stock.
As the market navigated a blend of sectoral gains and losses, technology and mining stocks took the lead in supporting the ASX on Monday, counterbalancing a soft start in the energy sector.
