Australian shares are stumbling as energy stocks counter the gold slump
Australian shares traded within a narrow range Monday as strength in energy companies offset weakness in gold stock. Meanwhile, investors stayed away as tensions in the Middle East increased, helping oil prices to extend their gains.
As of 0010 GMT, the S&P/ASX 200?index remained at 9,009.60. The benchmark index lost 0.2% on Friday and had its worst week for nearly a whole month.
Crude prices rose on Monday after tit-fortat strikes by the United States and Iran against vessels in the bottleneck Strait of Hormuz, as well as other areas over the weekend. This heightened fears of a long-term?supply interruption.
Oil's rise helped energy-linked shares in Sydney end a two session losing streak. Sector leaders Woodside Energy and Santos gained 0.6% and almost 1% respectively.
Real estate and consumer discretionary stocks also contributed to the overall strength of the index by increasing 0.6% and 0.4% respectively.
Shares of the data centre landlord Goodman Group increased by 0.4%, while JB Hi-Fi's shares rose as high as 1.5%. This was their highest level in almost two weeks.
Gold stocks fell 1%, bucking the overall strength. The yellow metal fell 2% on Friday after a stronger-than-expected U.S. jobs report boosted expectations of an imminent rate hike from the Federal Reserve.
Index?majors Northern Star Resources (down 0.8%) and Evolution Mining (down 0.5%) both declined.
After the U.S. stock index fell on Friday, technology stocks dropped nearly 2%. Enterprise software company?Xero dropped 2.4%, while logistics software maker WiseTech Global fell 3.4%.
Ingenia Communities Group, a group of individual stocks, jumped up to 20.3% on their largest day-to-day gain since October 2009. This was after they rejected a takeover bid by private equity firm Warburg Pincus which valued the Australian developer at more than 30% premium.
S&P/NZX50, the benchmark index for New Zealand across the Tasman sea, dipped by 0.1%.
(Reporting by Nikita Maria Jino in Bengaluru; Editing by Sherry Jacob-Phillips) |1|For more information on DIARIES & DATA: U.S. earnings diary Wall Street Week Ahead Global Economy Week Ahead ................................................................ For latest top breaking news across all markets |1|
(source: Reuters)
