ASX ends flat as oil rally offset by falls in gold, healthcare
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The news: The Australian sharemarket ended flat, as a strong rally in the energy sector was offset by declines in gold and healthcare stocks.
The benchmark ASX 200 rose 0.03% to close at 8,233.5, despite only five of the 11 sectors finishing in the green.
Biggest movers:
- Energy sector (+2.03%) — Oil prices rose as investors digested news reports of “substantial progress” in trade talks between the US and China. Karoon Energy (+5.05%), Beach Energy (+3.7%), Santos (+3.3%), Woodside Energy (+1.98%), Santos (+3.3%) and Ampol (+0.43%) all gained.
- Mineral Resources (+8.31%) — Was the second best performer across the ASX 200 despite superannuation fund HESTA announcing it had completely divested from the company over governance concerns.
- Telix Pharmaceuticals (-8.69%), Clarity Pharmaceuticals (-8.64%), Neuren Pharmaceuticals (-9.56%) — The three pharmaceutical companies were the worst performers across the ASX 200 after US President Donald Trump said he would sign an executive order to cut prescription prices.
- Gold stocks — Genesis Minerals (-5.73%), Ramelius Minerals (-5.58%), Spartan Resources (-5.41%), Vault Minerals (-5.32%), Evolution MIning (-3.71%) and Regis Resources (-3.71%) were all in the bottom 10 ASX 200 performers as gold prices dropped following a rise in the US dollar over trade talks between US and China.
Deals:
- Dyno Nobel (-1.95%) — Will sell its fertiliser distribution arm to Ridley Corporation for $375 million and posted a swing to a first-half net profit.
- PointsBet (ended flat) — Received a takeover bid from Betr Entertainment that is expected to be a “superior proposal” to its board-backed acquisition bid from MIXI Australia.
Other news:
- Southern Cross Media (+5.63%) — Has described notices from Sandon Capital detailing its intention to spill the board as a “considerable distraction” and an “unnecessary cost”.
- South32 (+2.87%), Rio Tinto (+2.06%) — Norway’s sovereign wealth fund’s board of ethics has advised it to divest from the two miners over environmental issues. South32 also announced that Anglo American executive Matthew Daley has been appointed its next CEO as Graham Kerr will step down in 2026.
- IDP Education (+2.29%) — Has appointed Tracey Horton as its new chair and will commence in the role on 16 June.
- Macquarie (+2.12%) — Citi analysts upgraded the stock to ‘neutral’ and increased its price target due to its ability to balance conservatism and optionality in its asset portfolio.
- FleetPartners (+2.01%) — Flagged that it expects demand to remain robust in the second half despite a drop in half-year profit and new business writings.
- Pexa (-1.19%) — Reaffirmed guidance after lifting transaction volumes in the third quarter but struck a cautious note saying matters may arise later that could impact the forecast.
- Telstra (-0.43%) — Named Microsoft’s Steven Worrall as the new chief executive of its specialist infrastructure business, Telstra InfraCo.
