ASX ends flat despite energy rally spurred by oil supply fears
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The news: The Australian sharemarket finished flat. The energy sector rally, driven by an oil price surge amid conflict between Iran and Israel, was offset by declining gold miners and broader uncertainty.
The energy sector (+5.2%) was also buoyed by surging uranium miners as demand lifted and confirmation from fossil fuel giant Santos (+10.9%) that it had received a $30 billion takeover bid from an Abu Dhabi-led consortium.
The benchmark ASX 200 slightly lifted by 0.01% to end at 8548.4, with five of the 11 sectors finishing in the green.
Biggest movers:
- Gold miners – Northern Star Resources (-8.2%) and Evolution Mining (-8%) led losses on the ASX 200 as UBS analysts downgraded their position on the stocks. Several other gold miners, including Westgold Resources (-7.6%), Ramelius Resources (-7.5%) and Spartan Resources (-6.6%), also took losses despite a huge spike in gold prices last week after Israel initiated conflict with Iran.
- Uranium miners – Deep Yellow (+21.2%), Boss Energy (+17.7) and Paladin Energy (+15.6%) led gains on the ASX 200 as demand for the energy resource grew, partly driven by the Sprott Physical Uranium Trust — the world’s largest physical uranium fund — announcing it would raise an additional USD100 million ($154 million).
- Big Four banks – Commonwealth Bank (+0.0%) and NAB (+0.2%) finished marginally up, while Westpac (-0.5%) and ANZ (-0.1%) closed lower.
Deals updates:
- Santos (+10.9%) – Confirmed the receipt of a $30 billion takeover bid from a consortium led by energy investment company XRG, a subsidiary of Abu Dhabi's state-owned oil company Adnoc.
- Adriatic Metals (+9%) – Share price closed higher following a Friday evening announcement that Toronto-listed miner Dundee Precious Metals plans to acquire it for USD1.25 billion ($1.9 billion).
- PointsBet (0.0%) – The gambling company’s board unanimously rejected a takeover bid by rival Betr Entertainment because it was not as good as an improved proposal made by Japanese entertainment giant MIXI Australia earlier this month.
- Tourism Holdings (-0.8%) – The New Zealand-based caravan company received a $472 million takeover bid from a consortium of BGH Capital and the Trouchet family - whose Apollo Motorhomes merged with Tourism Holdings in 2022.
- Mayne Pharma (-2.3%) – A court hearing will be held on 9 September to determine the validity of US-based Cosette Pharmaceutical’s attempt to terminate its proposed $672 million takeover of Mayne Pharma.
Other news:
- Aurizon (+1.3%) – The rail operator won a 15-year logistics contract to service BHP’s South Australian copper operations.
- Pilbara Minerals (-2.6%) – The lithium producer appointed its group financial controller Flavio Garofalo to interim chief financial officer, replacing Luke Bortoli who resigned earlier this month.
- Vulcan Steel (-1.7%) – Vulcan Steel’s chief executive Rhys Jones will step down after 19 years. The board is proposing he be appointed chair.
- Monash IVF (-3%) – Responded to an ASX aware letter questioning the fertility company on its reporting of an embryo transfer mixup to the market.
- ASX Limited (-6.7%) – ASIC has launched an inquiry into governance, capability and risk management frameworks and practices at the sharemarket operator after a string of clearance and settlement failures.
What’s ahead:
- The Federal Reserve Bank of New York will release data on the state’s manufacturing index for June at 10:30pm.
- The Bank of Japan is expected to make a statement on monetary policy and interest rates tomorrow, although it has not scheduled a fixed time.
- The G7 summit will continue tomorrow, with Prime Minister Anthony Albanese expected to meet with US President Donald Trump on the sidelines.
- Future Fund chair Greg Combet will deliver an address to the Committee for Economic Development of Australia at an event commencing at midday tomorrow.
