Australia’s sharemarket closed higher on Monday, defying a global downturn in technology stocks and rising oil prices. The benchmark S&P/ASX 200 gained 39 points, or 0.44 percent, to finish at 8,845.70, while the broader All Ordinaries index rose 35.30 points, or 0.39 percent, to 8,975.70. The Australian dollar strengthened against the US currency, trading at 69.73 US cents.
The market saw mixed sector performances, with six out of 11 sectors posting gains. Energy producers and major banks led the advance, supported by elevated oil prices. Woodside Petroleum shares rose 2.69 percent to $34.03, while Santos added 2.31 percent to $9.32. Banking heavyweights Commonwealth Bank, National Australia Bank, Westpac, and ANZ all climbed, with National Australia Bank advancing 1.48 percent to $39.90 and ANZ up 1.03 percent to $39.29.
Conversely, technology stocks weighed on the market due to continued weakness in US tech shares. Codan slipped 0.33 percent to $62.69, Xero dropped 2.38 percent to $60.32, and Technology One declined 1.91 percent to $31.30. The sell-off in technology companies echoed patterns seen in Asian markets, as investors remained cautious amid concerns about inflation, rising costs, and uncertain returns on significant investment in the artificial intelligence sector.
Global equities had ended last week on a weak note, with the US S&P 500 posting its largest weekly fall since late June, down nearly 2 percent, and the Nasdaq Composite dropping 4.5 percent, ending a four-week winning streak. The downturn spilled over into Asian markets, with Japan’s Nikkei falling 0.62 percent on Monday, while South Korea’s KOSPI recovered to close 1.76 percent higher after earlier losses.
Market analysts noted domestic traders largely ignored the volatility abroad. Joseph Marassa, an analyst with Global X ETF strategy, pointed out that the S&P/ASX 200 managed to edge higher despite a persistent sell-off in US tech stocks, driven by ongoing concerns about the artificial intelligence trade. Defensive sectors led the gains, while information technology remained the weakest.
Marassa also highlighted domestic economic factors influencing market sentiment. Weaker-than-expected Australian jobs data reduced expectations of a Reserve Bank of Australia (RBA) interest rate hike at the imminent meeting, with the probability of a rate increase currently at about 20 percent. However, he cautioned that persistently high oil prices and inflation risks could mean markets are underestimating the chances of further tightening by the RBA.
Among notable movers, waste management company Cleanaway surged 20.24 percent to $2.97 after announcing a $9.3 billion sale to Swedish private equity firm EQT. Meanwhile, Challenger Limited rose 19.29 percent to $11.75 amid reports of a possible $7.8 billion takeover bid from Japanese insurer Daiichi Life. Conversely, fuel company Ampol slipped 2.51 percent to $41.93 despite reporting refined fuel margins had more than doubled to US$23.92 per barrel, attributed to geopolitical tensions affecting supply.