AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- ASX200 falls 0.7% led by banking and energy stocks
- Westpac earnings miss triggers broader financial weakness
- Oil price slump drags energy majors; Qantas benefits
The ASX200 continued its downward trajectory on Monday, slipping 0.7% or 59.4 points to close at 8178.5, as pressure mounted across financial and energy sectors. The All Ordinaries followed suit, falling by a similar margin. A mix of underwhelming earnings results and volatile oil markets set the tone for a broadly weaker session, with five of the 11 sectors trading in the red.
Banking shares were notably under strain after Westpac Banking Corporation (ASX:WBC) reported half-year earnings that fell short of expectations. The stock dropped 2.6% after the bank posted a flat net interest margin, which cast uncertainty over its future business and institutional lending ambitions. The result also had a ripple effect on other financial majors: Commonwealth Bank of Australia (ASX:CBA) fell 2.2% and National Australia Bank (ASX:NAB) lost 2.1% in a challenging session for financials.
Meanwhile, energy stocks tracked global oil market losses, adding to the index's decline. Brent crude prices fell 3.9%, dipping below US$60 a barrel after OPEC+ announced a notable increase in supply. The impact was swift: Woodside Energy Group Ltd (ASX:WDS) sank 3.3%, while Santos Ltd (ASX:STO) declined 3%.
On the flip side, some sectors managed to cushion the broader losses. Qantas Airways Ltd (ASX:QAN) advanced 2.5% on optimism that lower fuel costs would bolster margins. A softer US dollar and strength in China’s yuan helped the Australian dollar touch a year-to-date high of US64.81¢, adding some tailwind for import-heavy sectors.
The market environment remains volatile as geopolitical uncertainties linger. Despite Wall Street gains in the previous session, futures pointed to caution following ambiguous comments from former US President Trump regarding tariffs on China.
In corporate movements, Gold Road Resources Ltd (ASX:GOR) rallied 8.8% after agreeing to a sweetened $3.7 billion takeover offer from South Africa’s Gold Fields. Endeavour Group Ltd (ASX:EDV) edged up 0.6% on guidance indicating steady retail sales into Q4.
A standout performer was Smartpay Holdings Ltd (ASX:SMP), which surged 22% after entering exclusive takeover discussions at NZ$1.20 a share, sidelining rival Tyro Payments. Shares of Tyro Payments Ltd (ASX:TYR) rose 3.9% in response. However, Reliance Worldwide Corporation Ltd (ASX:RWC) slipped 1.2% due to projected impacts from future US tariffs.
The session offered a reminder of the unpredictable nature of equity markets, especially in key segments like financials and energy. For those monitoring the evolving landscape of ASX200 stocks and assessing opportunities in ASX dividend stocks, current market dynamics highlight the importance of keeping an eye on sectoral rotations and global macro developments.
