Australian shares trim losses as miners play catch-up

The Australian share market pared early losses as a strong energy sector and mining recovery kept the market above water.

The benchmark S&P/ASX200 rose 2.8 points, or 0.03 per cent, to 9,032.8 points on Thursday, while the broader All Ordinaries rose eight points, or 0.09 per cent, to 9,329.1 points.

Energy stocks rose more than three percent after U.S. sanctions on Russian oil prices stabilized crude oil prices and the Woodside gas deal provided a springboard for the segment’s largest company.

“The ASX 200 had a minor early wobble below the 9000 level and has recovered quite well with the energy sector being the main driver,” IG Markets analyst Tony Sycamore told AAP. he said.

Woodside’s deal with US gas infrastructure provider Williams helped send its shares up more than 4 percent to $24.17, while Santos (down 2.2 percent) and Ampol (up 4.1 percent) also posted strong gains.

“Elsewhere we saw a mixed day for major mining stocks with banks mostly down, while gold stocks rebounded,” Mr Sycamore said.

Gold miners clawed back some of their losses from the previous session after the precious metal’s record-breaking run hit a brick wall on Tuesday night, capping its sharpest single-day decline since 2013.

Northern Star and Evolution Mining each recovered two percent, accounting for less than a third of Wednesday’s losses.

Spot gold was changing hands at US$4,108 ($A6,329) an ounce at 5pm; This remains just under six percent of recent record highs.

Producers of critical minerals and rare earths have been outbid in a tough week of trading since the announcement of Australia’s key minerals deal with the US.

Iluka Resources and Lynas Rare Earths gained more than three per cent, while lithium plays Liontown and Pilbara Minerals were up more than four per cent.

Shares in major miner Fortescue rose 2.4 percent to $20.84 after strong quarterly production results, while Rio Tinto lost 0.4 percent and BHP lost 1.2 percent after making little new offer to investors at its annual general meeting.

The financial heavyweight lost 0.8 percent, with CBA (down 1.4 percent) leading the big four, with shares trading at $171.66.

Insurers were stronger overall after IAG reported strong first quarter results that were “benign” on the natural catastrophe front.

Buy now, pay later provider Zip Co fell more than 13 percent in three sessions to $4.02 as investors took profits after the company raised its revenue forecasts earlier in the week.

Zip’s share price is up more than 200 percent since April.

Silex Systems became the top 200’s best-performing company, rising nearly nine percent after winning third-party validation of its laser-based uranium enrichment technology.

At the other end of the table was Perpetual Asset Management, which fell 4.3 per cent after chairman Greg Cooper told shareholders not to believe everything they read in the media, rather than directly denying reports that Oaktree was considering abandoning plans to buy Perpetual’s asset business.

Rebel Sport owner Super Retail Group also fell 4 per cent after signaling softening sales growth in its quarterly update.

The Australian dollar is buying 64.92 US cents, down slightly from 65.04 US cents at 5pm on Wednesday.

ON ASX:

* S&P/ASX200 up 2.8 points or 0.03 percent to 9,032.8 points

* More broadly, All Ordinaries rose eight points, or 0.09 percent, to 9,329.1

CURRENCY DISPLAY:

One Australian dollar is traded as follows:

*64.92 US cents, down from 65.04 US cents on Wednesday

* 98.93 JPY from 98.74 JPY

* 55.96 euro cents from 56.00 euro cents

* 48.64 British pence, from 48.70 British pence

* 113.18 New Zealand cents from 113.01 New Zealand cents