Australian shares steady as oil price rise lifts energy stocks, gold slump drags miners
The ASX 200 held near 9,010 points, with energy shares gaining on higher crude prices after renewed US‑Iran tensions, while gold and technology stocks fell on stronger US jobs data.
Share
Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Higher oil prices boost oil‑and‑gas earnings but increase import costs and inflation risk, leading to a cautious stance on related PSX sectors.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- Oil & GasNegatively affected
- PowerNegatively affected
- MarketsNegatively affected
Companies
Mentions in This Briefing
Sectors: Oil & Gas, Power, Markets — Negative · Do not buy. PSX tickers: OGDC, HUBC. Higher oil prices boost oil‑and‑gas earnings but increase import costs and inflation risk, leading to a cautious stance on related PSX sectors.
Full Story
Open on Business Recorder## Market overview
Australian equities traded in a narrow band on Monday, with the S&P/ASX 200 index ending at 9,009.6 points as of 0010 GMT. The index had slipped 0.2% on Friday, marking its worst weekly performance in almost a month.
## Energy sector gains
Crude oil prices rose after a series of tit‑for‑tat strikes between the United States and Iran on vessels transiting the Strait of Hormuz and nearby waterways over the weekend. The heightened risk of supply disruption pushed oil up, helping Australian energy stocks break a two‑day losing streak. Leading energy companies Woodside Energy and Santos posted gains of 0.6% and nearly 1% respectively.
## Gold and tech weakness
Gold prices fell 2% on Friday following a stronger‑than‑expected US jobs report that revived expectations of an imminent Federal Reserve rate hike. Consequently, gold‑related miners Northern Star Resources and Evolution Mining slipped 0.8% and 0.5%. Technology shares also retreated, tracking a decline in the US Nasdaq Composite; software firm Xero fell 2.4% and logistics software provider WiseTech Global dropped 3.4%.
## Other market moves
Real‑estate and consumer‑discretionary stocks added modest strength, rising 0.6% and 0.4% respectively. Data‑centre landlord Goodman Group gained 0.4%, while electronics retailer JB Hi‑Fi advanced as much as 1.5% to a near‑two‑week high. In a notable individual move, Ingenia Communities Group surged over 20% after rejecting a Warburg Pincus takeover bid that offered a premium of more than 30%.
## Regional context
Across the Tasman Sea, New Zealand’s S&P/NZX 50 index edged down 0.1%, reflecting the broader risk‑off tone in the region.
## Implications for Pakistan
Higher global oil prices can lift the earnings outlook for Pakistan’s listed oil‑and‑gas producers but also raise import bills and inflationary pressure, which may weigh on the broader market and the rupee.