AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
_01_09_2025_07_01_12_631371.jpg)
Highlights
Santos (ASX:STO) rises after takeover deal confirmation boosts energy stocks
Energy sector drives ASX 200 upward amid global oil price surge
Chinese retail sales growth supports broader market movement
The energy sector on the ASX 200 moved higher as Santos Ltd (ASX:STO), part of the ASX 100 and Australia share market, climbed strongly after a takeover deal was confirmed. The movement came during a session marked by rising global oil prices and geopolitical concerns, creating momentum across energy-related shares.
Santos attracted attention after a consortium led by Abu Dhabi National Oil Company (ADNOC) reached an agreement to acquire the company. The announcement aligned with rising oil futures driven by tensions in the Middle East. Energy producers responded to this combination of developments with widespread gains.
Oil Price Rally Supports Energy Sector
Oil futures recorded a sharp increase after reports indicated the possibility of restricted access through the Strait of Hormuz, a vital shipping route for global oil supply. This announcement followed military activity in the region and led to strong upward moves in crude oil prices globally.
Energy companies on the ASX reflected these movements. Woodside Energy Group Ltd (ASX:WDS) and Ampol Ltd (ASX:ALD) saw gains during the day, joining Santos in leading the sector. The strength in oil-related shares lifted the broader ASX 200, helping balance declines seen in other sectors.
Retail Activity in China Adds Market Momentum
New economic data from China showed stronger-than-expected retail growth, providing additional market support. The rise in domestic consumption contributed to improved sentiment, despite weaker industrial activity in steel production. These mixed signals from the Asian region influenced trading direction, particularly for sectors tied to commodities and export demand.
Retail-driven growth in China was welcomed by traders as it signaled resilient consumption patterns. At the same time, reduced steel production ongoing restrictions and cuts in output, limiting gains for specific materials stocks.
Mixed Reactions Across Gold Miners
Gold stocks posted varied results as global uncertainties increased interest in precious metals. Newmont Corporation (ASX:NEM) and Genesis Minerals Ltd (ASX:GMD) moved slightly higher. However, Evolution Mining Ltd (ASX:EVN) and Northern Star Resources Ltd (ASX:NST) declined following brokerage reassessments.
Precious metals tracked gains in gold as turned toward traditional safe-haven assets. While some companies posted small advances, others saw movement driven by updated institutional ratings and outlooks.
Financial Sector Declines Counter Energy Gains
Banks and financial institutions limited broader index performance. Commonwealth Bank of Australia (ASX:CBA), Westpac Banking Corporation (ASX:WBC), National Australia Bank Ltd (ASX:NAB), and Australia and New Zealand Banking Group Ltd (ASX:ANZ) traded lower, offsetting some of the strength seen in energy.
Despite the downward trend in the financial space, gains from the oil and gas sector were sufficient to keep the ASX 100 and ASX 200 in positive territory.
Sector Trends Shape ASX Movement
The Australia share market session was shaped by strong rotation within key sectors. Gains in energy, supported by higher oil prices and a confirmed acquisition of Santos, stood out amid losses in financials. Materials stocks posted mixed results, with gold miners showing divergence in performance based on individual developments. The day’s trade reflected a balance between geopolitical drivers, regional data from China, and domestic company updates.
