ASX subdued despite energy rally
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The news: The Australian sharemarket had a subdued session on Friday but a climb in oil prices led to a rally in energy stocks.
The numbers: The benchmark ASX 200 fell 0.1% to end at 8,214.5 with six out of 11 sectors finishing in red.
The energy sector gained 0.36% with Karoon (1.94%), Santos (0.83%) and Woodside (0.74%) all benefitting from a rise in oil prices overnight. The price rose due to Hurricane Milton in the US along with the continued conflict in the Middle East.
Gold stocks dominated the 10 best ASX 200 performers with Vault Minerals (7.81%), Regis Resources (5.07%) and De Grey Mining (3.25%) leading the pack. Spot gold prices were up 0.58% during the Australian trading day.
SiteMinder shares jumped 4.84% after Jarden upgraded its rating on the stock to ‘buy’ and lifted its price target.
Arcadium Lithium edged 0.24% lower after rallying 40% on Thursday as Morningstar analysts called Rio Tinto’s buyout of the company as “value destructive” for the lithium miner’s shareholders. Rio ended 0.05% lower.
NRW Holdings (0.55%) secured a $109 million development contract for BHP’s Jimblebar mine in Western Australia.
In other news, Appen and Dubber are both in trading halts for their respective capital raises. Appen’s $55 million raise aims to fund generative AI opportunities while Dubber’s $25 million equity raise is in part to help recover funds that were allegedly misused funds by its former CEO and a third party.
Meanwhile, Seven Group Holdings will be called SGH Limited as long as shareholders approve the name change at its annual general meeting in November.
The Australian dollar is buying 67.41 US cents.
What’s ahead: China’s Finance Ministry is set to hold a press conference on Saturday on fiscal policy. All eyes will be on the Australian resources sector next week if the ministry announces additional measures to stimulate the economy.
Next week will also see the latest labour force figures announced while the RBA’s assistant governor (economic) Sarah Hunter will speak at the Citi Australia & New Zealand Investment Conference.
AGM season is upon us with Telstra, Meridian Energy, Region Group, CBA, Origin, Bapcor, Santos, ARB Group, Perpetual and Treasury Wines all conducting theirs.
The European Central Bank is set to announce its next monetary policy decision, with a 25 basis point reduction widely expected.
