Energy sector jumps 1.5% as ASX ends higher; The Star mulls rescue offer
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The news: The Australian sharemarket ended a run of four daily losses, buoyed by a surge in energy stocks.
Oil companies Woodside Energy and Beach Energy led the rally, despite new economic data in China weighing on benchmark crude prices, while coal mining heavyweights Whitehaven and Yancoal also advanced.
Elsewhere, with shares still suspended, troubled casino operator Star Entertainment confirmed that it is considering a $250 million funding proposal from American gambling giant Bally's Corporation, as it attempts to avoid falling into administration.
The ASX 200 rose 0.18% to close at 7,962.3, with 7 out of 11 sectors finishing in green.
ASX 200 gains:
- Energy (1.5%) — Ended as the day's best performing sector. Oil stocks Beach Energy (4.5%) and Woodside Energy (2.4%) rallied, as did coal miners Whitehaven (3.3%) and Yancoal (2.2%).
ASX 200 declines:
- Johns Lyng (-12.1%) — Will drop out of the ASX 200 index from 24 March, having seen its share price drop by more than 35% since posting a disappointing half-year result two weeks ago. Elsewhere, Pro Medicus (1%) and Sigma Healthcare (-0.4%) were added to the ASX 50, with Mineral Resources (3.1%) and Ramsay Health Care (0.8%) dropping out.
Deals news:
- Star Entertainment (suspended) — Confirmed media reports that it has received an unsolicited, non-binding proposal for additional funding from US casino giant Bally’s Corporation.
- Boss Energy (-3.7%) — Entered into an agreement with ASX small cap Eclipse Metals (20%) over the development of Eclipse's Liverpool uranium project in the Northern Territory.
Other news:
- PolyNovo (4.6%) — Outlined steps it has taken to address governance concerns, amid media reports claiming that company chair David Williams was the subject of an internal bullying probe.
- St Barbara (-4.4%) — Slashed production guidance for its main Simberi mine in Papua New Guinea due to lower-than-expected average mined grade.
- GQG Partners (-0.9%) — Reported a rise in funds under management in February, as monthly net inflows reached USD1.1 billion
The Australian dollar is buying 63.15 US cents.
