ASX closes lower as oil slump offsets mining rally
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The news: The ASX finished lower as a slump for oil producers offset rallying copper and gold miners.
The benchmark ASX 200 fell 0.16% to end at 8,848.8 with nine out of the 11 sectors finishing in red.
The energy sector (-1.6%) was the worst performing as commodity prices tracked down ahead of an OPEC+ meeting on Sunday in which an output increase for November is expected to be agreed to.
Santos (-2.5%), Woodside (-1.7%), Karoon Energy (-3.2%), and Beach Energy (-3.4%) all fell.
The materials sectors (+0.9%) was the best performing as gold miners tracked the spot price for the commodity held near record highs and copper prices continued gaining amid global supply disruptions.
Copper producers Capstone Copper (+3.9%), South32 (+3%) and Sandfire Resources (+2.7%) were among the biggest gainers as were gold miners Bellevue Gold (+3.2%) and Capricorn metals (+2.9%).
Biggest movers:
- Restaurant Brands (+59.3%) — KFC and Pizza Hut operator Restaurant Brands News Zealand has received a takeover bid from Mexican investment group Finaccess for NZD 630 million ($552.2 million).
- IDP Education (+16.1%) – A Jefferies analyst upgraded their position to ‘buy’ from ‘hold’ and lifted the target share price by 72% to $8.60. They flagged positive web traffic data for the IDP co-owned English proficiency test IELTS as a signal of a potential macro turnaround.
- Southern Cross Austereo (+6.6%) and Seven West Media (+7.1%) — The two media companies have agreed to merge in a deal that is expected to deliver between $25 million and $30 million in annual pre-tax cost synergies.
- Droneshield (+5.9%) — Continued to rally amid heightened geopolitical tensions, particularly in Europe.
- PolyNovo (+3.3%) — Announced that its tissue regeneration medical devices will not be impacted by US President Donald Trump’s 100% tariff on branded or patented pharmaceuticals.
Deals news:
- Goodman Group (-0.8%) — Has partnered with Aware Super to invest $2 billion in a logistics platform that owns and operates three properties in Los Angeles.
- The Star Entertainment Group (+1.1%) — Confirmed it has negotiated a waiver for its 30 September debt covenant.
Other news:
- Newmont Corporation (-2.3%) — Has promoted its president and chief operating officer Natascha Viljoen to the chief executive role to replace Tom Palmer. Viljoen will start in the role on 1 January 2026.
- CSL (-0.4%) — Chief financial officer Joy Linton will step down from the role on 7 October, and will be replaced by chief strategy officer Ken Lim.
- Alcoa (+0.5%) — Flagged that it will permanently close its Kwinana alumina refinery in Western Australia due to the age of the facility, scale and operating costs, market conditions and bauxite grade challenges.
What’s ahead:
- The US Bureau of Labor Statistics is scheduled to release August data on the Job Openings and Labor Turnover Survey at midnight AEST.
