ASX closes 0.4% lower as oil price weakens

Market Reports

by Peter Milios

ASX declined on Monday, with a 0.4% drop in the benchmark S&P/ASX 200 index to 6948.8 points, primarily due to a sell-off in energy and bank stocks. This decline was also influenced by the energy sector's connection to weakening oil prices, which fell due to concerns over global demand and the reduction of risk premium associated with the Israel-Hamas conflict, with Brent crude nearing $US81 a barrel.

At the closing bell, the S&P/ASX 200 was 0.40 per cent lower at 6,948.80.

Futures

The Dow Jones futures are pointing to a fall of 119 points.

The S&P 500 futures are pointing to a fall of 19.5 points.

The Nasdaq futures are pointing to a fall of 77 points.

The SPI futures are down 33 points.

Best and worst performers

The best-performing sector was Utilities, up 0.34 per cent. The worst-performing sector was Energy, down 0.88 per cent.

The best-performing large cap was Boral (ASX:BLD), closing 5.12 per cent higher at $4.93. It was followed by shares in Infratil (ASX:IFT) and Altium (ASX:ALU).

The worst-performing large cap was TPG Telecom (ASX:TPG), closing 11.74 per cent lower at $4.81. It was followed by shares in Allkem (ASX:AKE) and ANZ Group Holdings (ASX:ANZ).

Asian markets

Japan's Nikkei has lost 0.13 per cent.

Hong Kong's Hang Seng has lost 0.12 per cent.

China's Shanghai Composite has gained 2.05 per cent.

Company news

Infinity Lithium Corporation (ASX:INF) has advised a grant funding of €18.8 million has been awarded to Tecnología Extremeña del Litio (‘TEL’) for the advancement of the San José Lithium Project. Infinity’s Managing Director and CEO, Ryan Parkin, commented “These first funding commitments for the processing of critical raw materials in Spain places the Company at the forefront of future funding pathways at both the national and European level.” Shares closed 41.18 per cent higher at 12 cents.

TG Metals Limited (ASX:TG6) has provided an update on lithium exploration activities at the Lake Johnston Lithium Nickel Gold Project, located in the Lake Johnston greenstone belt in WA. TG Metals CEO, Mr. David Selfe stated; “Since the discovery of the spodumene pegmatites at Burmeister, the deposit models we have been considering have been based on the Earl Grey lithium mine area…..We are eagerly anticipating the next drilling results from Burmeister which we expect assays back in the next 2 weeks.” Shares closed 21.4 per cent higher at $1.08.

4DMedical Limited (ASX:4DX) announced the inclusion of the company’s XV LVAS® procedure to the U.S. Centers for Medicare & Medicaid Services (CMS) annual, final payment rates for hospital outpatient-based services, effective 1 January 2024. 4DMedical MD/CEO and Founder Andreas Fouras said: I am very excited by this progress in the commercialisation of our technology, and the positive impact this reimbursement decision will have upon doctors and their patients.” Shares closed 70.7 per cent higher at 78.5 cents.

Commodities and the dollar

Gold is trading at US$1,941.10 an ounce.

Light crude is trading $0.71 lower at US$76.46 a barrel.

One Australian dollar is buying 63.60 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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