Australian shares rose in early trade on Monday, buoyed by energy stocks gaining on oil strength as Israel-Iran tensions sparked supply disruption fears, while oil and gas major Santos surged after receiving an $18.7 billion takeover offer.
The S&P/ASX 200 index advanced 0.2% to 8564.7, as of 0030 GMT.
The benchmark gained about 0.6% last week. Israel and Iran launched fresh attacks on Sunday, raising concerns of a broader regional conflict, triggering fears that the escalating battle could widely disrupt oil exports from the Middle East.
Energy stocks rose 6.1% and were headed for their best day in nearly five years. The sub-index hit its highest level since Oct. 11, on track for its sixth consecutive session of gains.
Santos rose 12.1% to hit its highest level since Aug. 1 after it received a $18.7 billion takeover bid from an international consortium led by Abu Dhabi’s National Oil Company (ADNOC).
The country’s bourse operator ASX fell 5.2%, hitting its lowest level since April 23, after the securities regulator said it had launched a probe into ASX’s risk management practices. Financials shed 0.2%, with the country’s “Big Four” banks losing between 0.1% and 0.7%.
Mining stocks rose 0.4% despite a dip in iron ore prices, lifted by global miners BHP and Rio Tinto gaining 0.9% and 1.1%, respectively.
Australian shares fall as miners offset real estate and healthcare gains
Real estate stocks and health stocks added 0.2% and 0.6%, respectively.
Among the laggards, information technology stocks fell 0.4%, while consumer staples shed 0.5%.
Meanwhile, New Zealand’s benchmark S&P/NZX 50 index was largely flat at 12,576.92.
Comments
Comments are closed for this article.