The Australian share market exhibited a resilient performance on Monday, closing flat despite a mixed session on Wall Street the preceding Friday. The Federal Court case, coupled with robust oil prices, played a pivotal role in buoying the energy sector and preventing significant losses across the broader market.
With U.S. markets closed for a public holiday on Monday, the focus remained squarely on local developments.
The benchmark S&P/ASX200 experienced a marginal decline of 0.03 per cent, or two points, concluding the day’s trade at 7,496.30. Simultaneously, the All Ordinaries mirrored this stability, dipping marginally by 0.01 per cent.
Only four out of the 11 industry groups on the ASX200 registered losses, with the Australian dollar showing a modest increase to 66.93 cents. The energy sector outperformed others, recording a substantial 2.39 per cent gain on Monday.
This surge was attributed to the escalation of global oil prices on Friday, triggered by retaliatory air strikes conducted by the United States and the United Kingdom against Houthi rebels in Yemen, responding to attacks on ships in the Red Sea.
Woodside concluded the day with a 1.1 per cent increase, reaching $31.63, while Santos emerged as one of the top performers, experiencing a significant uptick of 3.7 per cent, closing at $7.83.
The Federal Court’s decision permitting Santos to resume drilling for its $5.7 billion gas pipeline off the Northern Territory, despite opposition from Tiwi Island elders, contributed to the buoyancy of the gas giant.
Josh Gilbert, an eToro market analyst, remarked that although the week began at a leisurely pace, there was a discernible “little bit of positivity” among investors in response to Monday’s figures.
“The energy sector took the lead today and is expected to remain a focal point throughout the week, particularly given the heightened tensions in the Middle East,” he commented.
“Attention will be on oil, which has had a rather positive beginning to the week.”
