The Australian sharemarket pushed higher on Monday, led by the ASX resources shares, as petroleum producers gained on fears of an imminent Russian invasion of Ukraine and ASX gold miners rose on the back of gold’s traditional role as a safe-haven asset in times of geopolitical stress.
The S&P/ASX 200 (ASX: XJO) rose 0.4%, to 7243.9 points, while the broader All Ordinaries (ASX: XAO) added 0.3%.
But the tone of the session was mixed, with only six of 11 sectors showing a gain.
Oil prices surged to seven-year highs on Monday on fears that a possible Russian attack could lead to sanctions from Europe and the US. Brent crude futures touched $US96.16, the highest price since October 2014.
Investors are concerned that sanctions on Russia could worsen energy supply issues – and rising oil prices tend to feed into other commodities. However, it is an ill wind that blows nobody any good, and the ASX energy shares stirred at the prospect of higher petroleum prices.
ASX oil and gold shares bankroll the market
Woodside Petroleum Limited
(ASX: WPL) gained 3.6% to $27.43, and Santos Ltd (ASX: STO) added 4% to $7.72, but these were put in the shade by Beach Energy Ltd (ASX: BPT), which was also reporting half-year results.
Beach’s previously reported 11 million barrels of oil equivalent (MMboe) of production led to a revenue rise of 9.8%, to $797.4 million, and a net profit rise of 66%, to $212.9 million. The company’s realised oil price jumped from $US47 per barrel to $US84, while higher gas and ethane prices increased revenue by $16 million with realised prices of $7.54 a gigajoule.
In response, Beach shares gained 9.4% on the day, to $1.62, after hitting a ten-month high, at $1.64.
ASX gold miners also enjoyed the day, led by Evolution Mining Ltd (ASX: EVN), up 7% to $3.96, and Northern Star Resources Ltd (ASX: NST), which ended 5% higher at $9.00.
Crown accepts Blackstone takeover bid
In the industrial sector, a deal was struck between gaming heavyweight Crown Resorts Ltd (ASX: CWN) and private equity group Blackstone, under which Blackstone will buy all listed shares for $13.10 cash each, valuing the company at $8.9 billion. Counter-intuitively, Crown shares ended just 25 cents, or 2%, higher at $12.64.
JB Hi-Fi online sales surge
JB Hi-Fi Limited (ASX: JBH) reported first-half results that saw total sales fall by 1.6%, to $4.9 billion, but with online sales surging by 62.6% to $1.1 billion, to represent 22.7% of total sales.
In the first half of 2020, online sales were just 6.5% of total sales. First-half profit fell by 9.4%, to $420.5 million, but were up almost 69% over a two-year period – a strong performance in lockdown – and JB Hi-Fi wowed investors with a $250 million share buyback. The JB Hi-Fi share price gained 5%, to $51.71.
ASX 200 today
Looking ahead, the ASX 200 is expected to open lower this morning after US markets were slightly negative overnight.
