Aussie shares flat, Iran peace talks in focus
The Australian stock market is starting the week on balance, with oil prices volatile amid tense US-Iran talks in Switzerland.
While the S&P/ASX200 rose 1.6 points at noon on Monday, reaching 8,828.8 points, up 0.02 percent, the broader All Ordinaries index fell 0.8 points, falling 0.01 percent to 9,046.5 points.
“Despite the signing of the US-Iran peace deal on Thursday, geopolitical risk is likely to dominate the news cycle,” said Kyle Rodda, senior market analyst at Capital.com.
“Peace talks between the United States and Iran have begun in Switzerland amid threats to close the Strait of Hormuz following rising tensions between Israel and Hezbollah.”
Energy stocks fell 0.8 percent as oil prices fell after an overnight rise, putting pressure on Woodside and refinery operators Viva and Ampol.
The recent sell-off in mining stocks continued, albeit at a slower pace; The sector fell 0.5 percent on Monday as gold miners rebounded.
The precious metal rose to near US$4,190 ($5,978) an ounce after selling off last week as markets repriced based on the hawkish US interest rate outlook.
BHP and Rio Tinto continued their declines after reaching record highs in the past two weeks, even as iron ore and copper futures rose.
Major insurers helped support a 0.6 per cent rise in financial stocks, helped by modest gains in CommBank and ANZ shares, while NAB and Westpac were on the rise.
Consumer discretionary stocks also fared well, rising 0.6 percent, leading Aristocrat up more than two percent as the segment continued its recent recovery to trade at 18-week highs.
ASX-listed IT shares underperformed the broader market, falling 1.7 per cent following a sharp decline in industry giant WiseTech.
Logistics software provider falls more than 12 per cent after Australian Financial Review and other Nine publications He claimed that the Australian Federal Police were investigating the company’s co-founder, Richard White.
The nine reports focus on allegations of exploitation of a woman’s immigration status, financial insecurity regarding sex and misinformation on her visa application.
WiseTech declined to comment and the AFP has not yet responded to AAP’s request for information about the alleged investigation, which has not been officially confirmed.
Inghams was also heavy, falling five per cent after the deadly H5N1 bird flu variant was first detected on the Australian continent in Western Australia.
As a precaution, Inghams locked down its Western Australian farms and processing operations.
a2 Milk Company shares gained 3.7 percent after it announced a $300 million special dividend after receiving regulatory approval to spin off two acquired baby food products into its own brand.
Debt buyer and collector Credit Corp has abandoned plans to buy Humm.
The Australian dollar was buying 70.08 US cents, down slightly from 70.12 US cents at 5pm on Friday.
Looking ahead, it’s a big week for domestic macroeconomic data; May consumer price index data will be announced on Wednesday and unemployment data will be announced on Thursday.
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