ASX flat on latest geopolitical tensions

Perth Now

16 hours ago

Australia's sharemarket eked out a tiny gain during Monday afternoon's trading, thanks largely to energy stocks lifted by a spike in the oil and uranium price.
The benchmark ASX 200 index finished slightly higher up just 1 point or 0.01 per cent to finish trading on Monday at 8,5484.
The broader All Ordinaries have marginally finished in the green, adding 4.40 points or 0.05 per cent to 8,775.00.
The Australian dollar rose during Monday's trading and is now buying 65.04 US cents.
On a mixed day for the market, five of the 11 sectors finished higher led by the energy sector which soared a number of key announcements. The ASX 200 finished slightly higher on Monday. Photo: NewsWire/ Gaye Gerard Credit: News Corp Australia
The price of crude oil sharply rose over the weekend, after tensions between Iran and Israel saw the two nations firing missiles at each other.
Shares in Woodside jumped 3 per cent to $25.96, Ampol also gained 0.19 per cent to $25.86 and Beach Energy jumped 1.92 per cent to $1.32.
Santos shares were up 11 per cent to $7.72 after a UAE consortium-led takeover proposal for Santos to the tune of $28.87bn, as well as rising oil prices.
IG market analyst Tony Sycamore said while the situation in the Middle East remained fluid, Israel's early successes in knocking out large parts of Iran's military was muting the jump in oil prices.
'There are fears that Iran may close the Strait of Hormuz, which would impact oil trade, as it is the primary route for oil exports from major OPEC producers like Saudi Arabia, Iraq, the UAE, and Kuwait,' Mr Sycamore said.
'This is viewed as a measure of last resort by Iran, as it would affect its main customers, China and India, and increase the likelihood of US military intervention.' Five of the 11 sectors jumped, lead by the energy sector. Photo: NewsWire/ Gaye Gerard Credit: News Corp Australia
Uranium stocks were also the major winners with Deep Yellow soaring 22.93 per cent to $1.59, Boss Energy gained 20.1 per cent to $4.42 and Paladin Energy also jumped 16.90 per cent to $7.36.
'There is an idea that there is going to be a $20bn investment in data centres over the next five years by a tech giant, which is giving the shares a boost,' he said.
'The second part of this is that the Spott Physical Uranium Trust will raise $US100m to buy the nuclear fuel.'
While the energy stocks jumped, consumer staples were the biggest hit on fears of higher oil costs impacting these stocks costs.
Woolworths shed 1.2 per cent to $31.80, Coles was 0.7 per cent off to $22.06, Treasury Wine and Endeavour Group dipped 2.4 per cent to $3.99.
Treasury Wine Estates also fell 1.49 per cent to $7.93 while A2 Milk finished in the red down 1.24 per cent to $7.95.
'At the end of the day there is a risk of higher energy markets,' he said.
'If energy prices stay higher that flows into core prices because crude oil is the lifeblood of so much in terms of production and transportation cost.'
In corporate news shares in Campervan group Tourism Holdings shares soared 56.04 per cent to $2.13 after announcing a $471m bid from BHP Capital.
While shares in infant formula maker Bubs also finished strongly in the green up 6.25 per cent to $0.17 after telling the market it submitted clinical trial data to the US FDA under the New Infant Formula Submissions.