Australian shares traded in a narrow range on Monday as gains in energy stocks from higher crude prices offset a decline in gold miners and technology shares. The S&P/ASX 200 index held at 9,009.60, little changed from Friday's close.
The benchmark had fallen 0.2% on Friday, its worst weekly performance in nearly a month. Investors remained cautious after a flare-up in Middle East tensions pushed oil prices higher over the weekend.
Energy stocks rally on oil price surge
Crude prices advanced following tit-for-tat strikes between the United States and Iran on vessels sailing near the Strait of Hormuz, a key oil transit chokepoint. The escalation intensified concerns about prolonged supply disruptions.
Energy-linked stocks snapped a two-session losing run. Woodside Energy rose 0.6% and Santos gained nearly 1%. The broader energy sector helped offset weakness elsewhere in the index.
Real estate and consumer discretionary stocks also added to broader strength, rising 0.6% and 0.4% respectively. Data centre landlord Goodman Group advanced 0.4%, while electronics retailer JB Hi-Fi climbed as much as 1.5% to its highest point in nearly two weeks.
Gold stocks slide on rate hike expectations
Gold stocks dropped 1%, bucking the broader market's resilience. The yellow metal fell 2% on Friday after a stronger-than-expected US jobs report boosted expectations of an imminent rate hike from the Federal Reserve. Higher interest rates typically weigh on gold because they increase the opportunity cost of holding non-yielding assets.
Index majors Northern Star Resources and Evolution Mining declined 0.8% and 0.5% respectively. Investors tracking the live gold price will note that the metal's recent weakness has directly weighed on Australian gold miners.
Tech stocks track Nasdaq lower
Technology stocks slid nearly 2%, tracking losses on the Nasdaq Composite after the US index fell on Friday. Enterprise software firm Xero dropped 2.4%, while logistics software maker WiseTech Global declined 3.4%.
Ingenia jumps on takeover rejection
Among individual stocks, Ingenia Communities Group surged as much as 20.3% in its largest single-day advance since October 2009. The property developer rejected a takeover bid from private equity firm Warburg Pincus that valued the company at a more than 30% premium.
Key takeaways
- The S&P/ASX 200 held flat at 9,009.60 as energy gains offset gold and tech weakness.
- Crude prices rose after US-Iran strikes near the Strait of Hormuz raised supply disruption fears.
- Gold stocks fell 1% after a strong US jobs report boosted rate hike expectations.
- Ingenia Communities jumped 20.3% after rejecting a Warburg Pincus takeover bid.
Common questions
Why did Australian gold stocks fall on Monday?
Gold stocks dropped 1% after the price of gold fell 2% on Friday following a stronger-than-expected US jobs report. The data boosted expectations that the Federal Reserve could raise interest rates sooner than anticipated, which typically weighs on the non-yielding metal.
What drove energy stocks higher?
Energy stocks rose as crude prices extended gains after tit-for-tat strikes between the US and Iran on vessels near the Strait of Hormuz. The escalation heightened concerns about potential supply disruptions from the key oil transit route.
How did the broader Australian market perform?
The S&P/ASX 200 index held steady at 9,009.60, trading in a narrow range as gains in energy, real estate and consumer discretionary stocks offset declines in gold miners and technology shares.
In New Zealand, the S&P/NZX 50 index edged 0.1% lower.
The mixed session reflects a market weighing rising geopolitical risk against domestic sector-specific pressures, with the outlook for interest rates remaining a key driver for both gold and growth stocks.