ASX rises 0.2% on energy and gold rally amidst Middle East tensions

Market Reports

by Peter Milios

On Monday, the ASX experienced gains, primarily driven by a significant increase in energy and gold stocks. This surge was a result of a sharp rise in oil prices in Asia, triggered by recent violent incidents involving Hamas in Israel. The benchmark S&P/ASX 200 index increased by 0.2 percent, adding 16 points to reach 6970.2 by the end of the trading day. In response to the turmoil, investors sought safety in gold, causing a rise in gold stocks. The broader All Ordinaries index also climbed, gaining 14 points to reach 7157.

Futures

The Dow Jones futures are pointing to a fall of 206 points.

The S&P 500 futures are pointing to a fall of 31.75 points.

The Nasdaq futures are pointing to a fall of 112.75 points.

The SPI futures are up 19 points.

Best and worst performers

The best-performing sector was Energy, up 3.04 per cent. The worst-performing sector was Information Technology, down 0.45 per cent.

The best-performing large cap was Evolution Mining (ASX:EVN), closing 6.29 per cent higher at $3.55. It was followed by shares in Newcrest Mining (ASX:NCM) and Santos (ASX:STO).

The worst-performing large cap was Pilbara Minerals (ASX:PLS), closing 4.6 per cent lower at $3.73. It was followed by shares in Qantas Airways (ASX:QAN) and EBOS Group (ASX:EBO).

Asian markets

Japan's Nikkei has lost 0.26 per cent.

Hong Kong's Hang Seng has gained 1.58 per cent.

China's Shanghai Composite has lost 0.67 per cent.

Company news

Radiopharm Theranostics (ASX:RAD) announced it has been granted Human Research Ethics Committee approval to commence its First-In-Human Phase I study in Australia for the Company’s therapy for patients with PDL1- positive non-small cell lung cancer. The trial is expected to start shortly. Shares closed 3.85 per cent lower at 12.5 cents.

Talon Energy (ASX:TPD) announced an update on the Walyering gas field production. The update states that ~52 TJs of gross commissioning gas was sold prior to commencement of firm gas sales which has been invoiced. Shares closed flat at 21 cents. 

Azure Minerals (ASX:AZS) announced that very positive results have been received from the maiden metallurgical testwork program underway at the Company’s Andover Lithium Project located in the West Pilbara region of Western Australia. Commenting on these results, Managing Director, Mr Tony Rovira said, “the metallurgical testwork completed to date indicates that processing of ore from the Project will be undertaken via industry-standard whole-of-ore flotation to produce a spodumene concentrate.” Shares closed 14.58 per cent lower at $2.05. 

Commodities and the dollar

Gold is trading at US$1,863.50 an ounce.

Iron ore is 0.0 per cent even at US$119.45 a tonne.

Iron ore futures are pointing to a 2.9 per cent fall.

Light crude is trading $2.88 higher at US$85.67 a barrel.

One Australian dollar is buying 63.51 US cents.

Peter Milios

Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.

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