ASX200: Oil prices nosedive on Israel-Iran ceasefire promise
Apparent calm in the Middle East has subdued oil prices as Australian energy stocks took a hit on Tuesday.
The benchmark ASX200 finished up 80 points to 8555.5, a 0.95 per cent gain on the day.
Eight of eleven sectors were in the green.
There were successful debuts for Virgin Australia and Greatland Resources, sparking hopes for a resurgence of initial public offerings on the ASX.
But broader Middle East events hit Australia's big energy players hard.
The sector was down 3.9 per cent on Tuesday, led by biggest player Woodside which lost 6.5 per cent to $24.16.
'The oil market just staged a masterclass in financial theatre – loud opening act, whispered finale,' independent analyst Stephen Innes said of fluctuations since the US bombing of Iran.
'After roaring to (US)$78.50 a barrel on weekend war headlines, crude did a hard about-face, nosediving over 7 per cent to close near $68.50, dragging the entire energy complex with it. It's not just a round trip. It's a mood swing with a ticker.
'Oil, once again, played both the arsonist and the fireman – igniting fears with every missile and then soothing them just as fast when Tehran's 'retaliation' turned out to be more of a press release than a war cry.'
The latest fluctuation in oil prices came off the back of Donald Trump announcing a ceasefire between Israel and Iran. The global Brent crude benchmark fell almost 4 per cent on Tuesday to $US66 per barrel and US WTI lost 5 per cent to $US65.
Oil and gas explorer Karoon Energy shed 6.5 per cent to finish at $1.95, while Santos slipped 1.5 per cent to $7.66.
Domestically, the City of Sydney has announced a ban on new homes having gas appliances, while the Victorian government will phase out gas hot water systems from 2027.
Following energy stocks, the ASX utilities sector also fell into the red Tuesday, as Origin Energy fell 2.5 per cent and APA Group lost 1.7 per cent.
AGL slipped 1 per cent and Genesis Energy shed 0.95 per cent.
Looking to the top of the tables, materials led the bourse's Tuesday charge into positive territory.
Rio Tinto and Hancock Prospecting announced a $2.5bn, 50-50 split investment to extend the Hope Downs iron ore project.
Rio also flagged $20bn of new mine, equipment and plant investment in the coming three years. In turn, Rio's share price gained a tick over 3 per cent to $104.94.
At the checkout, investors flocked to KFC operator Collins Foods.
The small-cap had a finger-lickin' day, spiking 17.4 per cent.
The intraday high peaked at 26 per cent, as a full year profit fall of 89 per cent was announced. Investors are hoping the price has bottomed out.
There were also two highly promising IPOs.
London-listed gold and copper miner Greatland Resources rocketed to $7.30, gaining 43.7 per cent on debut.
Virgin Australia successfully relaunched as well, closing with an 11.4 per cent gain, to $3.23.
The two floats were worth a combined $1bn.
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