- Markets @ Midday: Listen here at lunchtime or find all Market Matters Podcasts on Spotify.
The ASX finished modestly higher to start the week as oil prices fell more than 5% on growing optimism that a US-Iran deal to reopen the Strait of Hormuz could be imminent. The session was relatively orderly with the US market closed for Memorial Day, leaving Asian markets to set the tone. A notable divergence emerged between energy names — which came under heavy selling pressure — and mining stocks, which caught a bid as gold rose on the prospect of easing inflationary pressures. Coal stocks were a standout, surging on a mine explosion in China’s Shanxi province that sparked supply disruption fears.
- ASX 200: 8,692 / +34.97pts / +0.40%
- AUD/USD: 0.7167 / +0.56%
- Best sectors: Materials +1.84%, Consumer Discretionary +1.02%, IT +1.02%
- Worst sectors: Healthcare −0.67%, Communications −1.32%, Energy −2.41%
- Gold & mining stocks led the charge as bullion climbed more than 1%. Resolute Mining (ASX: RSG) +9.39% was the standout gainer on the day, while Newmont (ASX: NEM) +5.06% and Northern Star (ASX: NST) +5.74% also rallied strongly as traders priced in easing inflation expectations from falling oil. Gold Road Resources (ASX: GGP) +6.75%, Ramelius Resources (ASX: RMS) +6.56%, Capricorn Metals (ASX: CMM) +5.95%, West African Resources (ASX: WAF) +3.65% and Evolution Mining (ASX: EVN) +4.19% all caught strong bids.
- Coal stocks surged after a deadly explosion at the Liushenyu mine in China’s Shanxi province killed at least 82 people — the deadliest accident since 2009. The blast triggered fears of broader supply disruptions with Dalian coal futures soaring 8%. Whitehaven Coal (ASX: WHC) +8.70% was the big winner, while Yancoal (ASX: YAL) +7.48% and New Hope (ASX: NHC) +4.73% also surged.
- Charter Hall (ASX: CHC) +6.67% was strong after upgrading FY26 operating earnings guidance for a third time, lifting expected earnings to $1.03/share as institutional capital inflows surged to a record $6.5 billion for the year.
- Qantas (ASX: QAN) +5.76% was a strong mover, benefiting directly from the pullback in oil prices, despite news that supply chain disruptions will delay delivery of Airbus A350-1000ULR aircraft for its Sydney-London and Sydney-New York ultra-long-haul routes until next year.
- Energy stocks sold off sharply as Brent crude fell more than 5% in Asia on Iran deal optimism. Karoon Energy (ASX: KAR) −5.69% was the worst performer, followed by Viva Energy (ASX: VEA) −5.63%, Woodside (ASX: WDS) −4.24%, Ampol (ASX: ALD) −4.20% and Santos (ASX: STO) −3.64%.
- Banks were mixed. NAB (ASX: NAB) +1.14% outperformed following Citi’s upgrade, while Westpac (ASX: WBC) +0.60% and ANZ (ASX: ANZ) +0.76% edged modestly higher. Commonwealth Bank (ASX: CBA) −0.65% dipped on Citi’s view that budget effects haven’t been fully reflected in its price.
- Fortescue (ASX: FMG) +1.67% announced executive director and former CEO Elizabeth Gaines will exit the board on June 30 after a 13-year tenure. Former Dutch finance minister Sigrid Kaag will join as a replacement.
- Beach Energy (ASX: BPT) −1.33% slipped after announcing plans to sell its 60% stake in the VIC/L35 permit in the Otway Basin for approximately $130 million.
- Guzman y Gomez (ASX: GYG) +0.25% was marginally higher as the market continued to welcome its exit from the US. UBS raised its price target to $24/share from $22, retaining a Buy rating.
- Seek (ASX: SEK) −4.96% and TUA (ASX: TUA) −3.90% were notable laggards outside energy.
- Oil (Brent): ~US$97.88/barrel / −5.5%
- Gold: US$4,575/oz / +1.5%
- Iron Ore: ~US$107.50/mt
- Asian Markets: China +0.6%, Hong Kong +0.51%
- Global Futures: S&P500 E-Mini +0.93%, Dow E-Mini +0.76%, FTSE flat
