ASX200 Slips as Banks and Energy Weigh; Gold Road (ASX:GOR) Shines on Deal Buzz

May 05, 2025 02:26 PM AEST | By Team Kalkine Media

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ASX200 Slips as Banks and Energy Weigh; Gold Road (ASX:GOR) Shines on Deal Buzz — Image source: Shutterstock

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Highlights

ASX posts sharpest fall in four weeks

Bank and energy sectors drag market lower

Gold Road (GOR) surges on takeover news

The ASX200 experienced its steepest decline in nearly a month, pulled down by weakness in banking and energy sectors. By Monday’s close, the S&P/ASX 200 shed 0.7%, or 56.6 points, settling at 8181.4. Eight out of 11 industry sectors finished in the red, pushing the broader All Ordinaries index to a similar 0.7% loss.

Financial stocks were at the forefront of the downturn following a disappointing half-year earnings result from Westpac (ASX:WBC). The lender dropped 2.6% after its interim profit missed market forecasts, raising concerns around its strategy to accelerate business and institutional lending. The broader banking sector followed suit, with Commonwealth Bank (ASX:CBA) falling 1.8% and National Australia Bank (ASX:NAB) slipping 1.9%.

Investor caution grew as Westpac’s results marked the start of a pivotal week for bank earnings, highlighting the challenging landscape for the financial sector.

The energy space added to the day’s negative tone, tracking a sharp 3.9% decline in Brent crude prices after OPEC+ signaled an aggressive increase in output. Key players Woodside Energy (ASX:WDS) and Santos (ASX:STO) fell 3.5% and 3.7%, respectively.

In contrast, Qantas (ASX:QAN) bucked the trend, climbing 2.4% amid expectations that lower oil prices would ease fuel cost pressures for airlines.

Meanwhile, the Australian dollar touched a new 2024 high of US64.81¢, driven by a weakening US dollar and a stronger Chinese yuan.

Among standout movers, Gold Road Resources (ASX:GOR) surged 9.6% after agreeing to a sweetened $3.7 billion takeover offer from South Africa’s Gold Fields.

Smartpay (ASX:SMP) rocketed 22.4% after entering exclusive acquisition talks with an unnamed party offering NZ$1.20 per share. Rival Tyro Payments (ASX:TYR) rose 9%, although it is not part of the ongoing deal.

Endeavour Group (ASX:EDV) gained 1.7% after signaling stable to slightly improving retail sales in the final quarter.

However, Reliance Worldwide (ASX:RWC) dipped 2.2% after flagging the impact of US tariffs, projecting a hit of up to US$35 million to 2026 earnings.

This mix of earnings, global oil dynamics, and corporate movements painted a cautious tone across the ASX200 landscape. While sectors like travel and M&A-linked stocks saw gains, many investors closely monitored bank earnings and commodity-driven shares.

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