Energy surges on Monday’s session: ASX closes 1.1% higher

The Australian sharemarket had a strong start to the week after all sectors finished Monday’s session in positive territory. Energy led the pack, up 2.6 per cent, followed by real estate, consumer discretionary and healthcare. Adding the least amount of points were industrials and materials, both up 0.4 per cent each. 

At the closing bell, the S&P/ASX 200 was 1.1 per cent or 73 points higher at 6,613.

The top performer in the ASX 200 was Imugene (ASX:IMU), which closed 12.8 per cent higher at 22 cents. This was followed by New Hope Corporation (ASX:NHC), up 8.1 per cent to $3.61, and Ingenia Group (ASX:INA), up 5.6 per cent to $4.17.

The worst performer in the ASX 200 was Magellan Financial (ASX:MFG), which closed 9.9 per cent lower at $11.71. This was followed by PointsBet (ASX:PBH), down 5.6 per cent to $2.72, and Lake Resources (ASX:LKE), down 4 per cent to 73 cents.

Energy stocks advanced as Woodside Energy (ASX:WDS) rose 2.7 per cent to $31.28 and Santos (ASX:STO) jumped 3.1 per cent to $7.44.

The four major banks were higher, led by Westpac (ASX:WBC), up 1.3 per cent to $19.67, and ANZ Banking (ASX:ANZ), up 1.3 per cent to $22.28. Commonwealth Bank (ASX:CBA) rose 0.8 per cent to $91.45 and National Australia Bank (ASX:NAB) closed 0.8 per cent higher at $27.74.

Northern Star (ASX:NST) led gold miners, up 3.7 per cent to $7.06. Evolution Mining (ASX:EVN) added 2.9 per cent to $2.45 and Newcrest Mining (ASX:NCM) closed 2.3 per cent higher at $20.73.

On to heavyweight miners, BHP (ASX:BHP) was under pressure, down 0.2 per cent to $39.99, while Rio Tinto (ASX:RIO) rose 0.6 per cent to $100.90 and Fortescue Metals (ASX:FMG) closed 0.4 per cent higher at $17.07.

There was news of several companies being awarded agreements.

NRW Holdings (ASX:NWH) was awarded two deals worth $78 million. One is with Lynas Rare Earths and the other is with Rio Tinto, both under NRW’s subsidiary, DIAB Engineering. Shares closed 2.1 per cent higher at $1.74.

icetana (ASX:ICE) inked a 4-year deal with Dubai-based Tandeem group, which operates several Middle Eastern shopping malls. Shares closed flat at 2 cents.

Meanwhile, Bubs Australia (ASX:BUB) entered into new supply agreements with two retail banner groups in the US, anticipating the arrival of plane number four under “operation fly formula”. Shares closed 3.2 per cent higher at 64 cents.

Local economic news

The total number of dwellings approved rose 9.9 per cent in seasonally adjusted terms in May, following a 3.9 per cent fall in April, according to the Australian Bureau of Statistics.

The value of new housing loan commitments rose 1.7 per cent to $32.4 billion in May, seasonally adjusted, according to the Australian Bureau of Statistics.

Company news

Ora Banda Mining (ASX:OBM) appointed Luke Creagh as chief executive officer, to start immediately. Shares closed 23.3 per cent higher at 3.7 cents.

NeuRizer (ASX:NRZ) signed a $1.5 billion binding offtake agreement with DaelimCo, a subsidiary of Daelim, for the supply of urea fertiliser. Shares closed 6.7 per cent higher at 19 cents.

Suncorp (ASX:SUN) provided an update on the weather impacting NSW and parts of South-East Queensland, as well as confirmed natural hazard costs in the 2022 financial year and the placement of its FY23 reinsurance program. Shares closed 0.6 per cent higher at $11.01.

Volpara Health Technologies (ASX:VHT) signed a 42-month contract with Radnet Management, with a mutual option to extend. Shares closed 17 per cent higher at 55 cents.

Coda Minerals (ASX:COD) agreed to divest its Mt Piper Gold Project in central Victoria to Kalamazoo Resources for a consideration package. Shares closed 16.7 per cent higher at 32 cents.

Uranium laser tech company Silex Systems (ASX:SLX) has inked a non-binding letter of intent with one of the largest energy companies in the US to develop areas of mutual interest in the nuclear fuel supply chain. Shares closed 21.5 per cent higher at $2.66.

Anson Resources (ASX:ASN) completed the latest phase of its ongoing resource expansion drilling program, at the Long Canyon No. 2 well, recording 3,785 pressures. Shares closed 7.5 per cent higher at 10 cents.

Bowen Coking Coal (ASX:BCB) shipped its first coal from its Bluff Mine in central Queensland. Shares closed 2.2 per cent higher at 23 cents.

Home Consortium (ASX:HMC) announced the launch of its HMC Capital Partners Fund 1, an Australian-based unlisted wholesale fund. Shares closed 2.8 per cent higher at $4.77.

Breville Group (ASX:BRG) completed the acquisition of Italian-based prosumer coffee group, LELIT. Shares closed 5.1 per cent higher at $19.06.

Futures

The Dow Jones futures are pointing to a fall of 129 points.
The S&P 500 futures are pointing to a fall of 17 points.
The Nasdaq futures are pointing to a fall of 60 points.
The SPI futures are pointing to a rise of 77 points when the market next opens.

Asian markets

Japan’s Nikkei has gained 0.8 per cent.
Hong Kong’s Hang Seng has lost 0.4 per cent.
China’s Shanghai Composite has gained 0.2 per cent.

Commodities and the dollar

Gold is trading at US$1812.34 an ounce.
Iron ore is 3 per cent lower at US$116.45 a ton.
Iron ore futures are pointing to a fall of 5.4 per cent.
Light crude is trading $0.52 higher at US$97.82 a barrel.
One Australian dollar is buying 68.34 US cents.