Australian shares steady as energy gains offset gold and tech slump
The S&P/ASX 200 index held steady on Monday as rising crude prices buoyed energy stocks, counterbalancing losses in gold and technology sectors amid Middle East supply concerns and shifting US rate expectations.
Australian equities traded in a narrow range on Monday, with the benchmark S&P/ASX 200 index holding at 9,009.60. The market found a delicate balance as surging energy valuations neutralized broad weakness in gold and technology shares.
Crude prices extended their gains following weekend tit-for-tat strikes between the United States and Iran on vessels in the Strait of Hormuz. This escalation intensified investor fears of a prolonged supply disruption in a critical global shipping bottleneck.
The oil rally allowed Sydney’s energy sector to snap a two-session losing streak. Sector heavyweights Woodside Energy and Santos advanced 0.6 percent and nearly 1 percent, respectively, providing crucial support to the broader index.
Conversely, gold miners retreated as the precious metal continued to face headwinds from Washington. Bullion prices dropped 2 percent on Friday after a robust U.S. jobs report heightened expectations of an imminent Federal Reserve rate hike, pressuring non-yielding assets.
Reflecting this macroeconomic shift, major Australian gold producers faced downward pressure. Index constituents Northern Star Resources and Evolution Mining declined 0.8 percent and 0.5 percent, respectively.
Technology stocks also dragged on market sentiment, sliding nearly 2 percent in tandem with the Nasdaq Composite. Enterprise software provider Xero fell 2.4 percent, while logistics software maker WiseTech Global dropped 3.4 percent as investors reassessed growth valuations.
Despite the tech and mining drag, real estate and consumer discretionary stocks contributed to the market's underlying resilience. These sectors added 0.6 percent and 0.4 percent, respectively, demonstrating selective investor confidence in domestic demand.
In individual corporate news, Ingenia Communities Group surged as much as 20.3 percent. This marked the property developer’s largest single-day advance since October 2009, following its rejection of a takeover bid from private equity firm Warburg Pincus that represented a premium of more than 30 percent.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 index mirrored the cautious regional tone, edging 0.1 percent lower. The muted trading reflects a broader wait-and-see approach among Australasian investors navigating geopolitical volatility and shifting monetary policy outlooks.
