Shares creep higher as miners lift on easing oil prices
Australia’s stock market is on the rise as gold stocks continue to recover and oil falls to its lowest level since the start of the Persian Gulf conflict.
The S&P/ASX200 gained 49.2 points at midday Wednesday, up 0.55 percent to 8,966.9 points, while the broader All Ordinaries index rose 52.7 points, or 0.58 percent, to 9,184 points.
Energy and utilities stocks were heavily burdened; Each sector was down more than two percent in early trading as Brent oil futures fell below $80 a barrel; It’s the lowest price since early March and shortly after US-led airstrikes on Iran triggered the largest energy supply shock in history.
Ampol and Viva Energy have both been sold, but the refinery operators’ share prices are still around 20 percent higher than their pre-conflict prices.
The materials sector has moved in the other direction as fuel costs are expected to decrease and gold miners continue to recover from recent weakness.
Gold is trading at US$4,343 ($6,144) an ounce after falling for weeks on fears that higher global inflation will force more central banks to raise interest rates and put pressure on non-yielding assets.
“Australian investors are taking some comfort from low oil prices, easing geopolitical tensions and a stable interest rate environment,” Moomoo trading manager Chris Strazzeri said.
“All of this supports sentiment overall, but investors are still showing signs of caution when it comes to fast-growing domestic sectors.
“All investors will focus on the US interest rate decision tomorrow and these are expected to remain on hold, but the new chairman’s (Kevin Warsh) comment will be critical.”
BHP rose 0.4 percent to $65.78, its new intraday high, as copper prices strengthened. Iron ore futures attempted to shake off recent fears to trade around $101.40 per tonne due to persistent oversupply concerns.
The financial heavyweight sector rose 0.5 per cent, putting it on track for a fourth consecutive session of gains as the Commonwealth Bank put the big four banks in the green and investment giant Macquarie set a new record by trading above $250 per share for the first time.
ARN Media shares rose by more than a quarter after the media company settled its $12.1 million legal dispute with shock jock Karl Sandilands following the termination of his $100 million, 10-year Kyle and Jackie O Show contract.
Flight Center shares rose more than 4 percent despite the company lowering its 2026 guidance and forecast for maximum underlying profits of $295 million, which had previously been marked at $345 million.
Qantas and Virgin Australia have continued to recover from recent selling pressure on the expectation that jet fuel prices will cool and air travel disruptions will ease.
The Australian dollar was buying 70.68 US cents at 70.55 US cents at 5pm on Tuesday.
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