Australia’s share market is taking a tentative step forward to start the week, as crude prices and interest rate worries continue to temper risk appetite.
The S&P/ASX200 rose three points by midday, up 0.03 per cent, to 9,008.9, as the broader All Ordinaries inched 4.1 points higher, or 0.04 per cent, to 9,200.1.
The hesitant advance followed a soft Wall Street finish on Friday, after strong US jobs figures ratcheted rate hike expectations, with inflation data due later in the week.
Local energy stocks were the only clear winners on Monday morning, the segment up 1.1 per cent as Brent crude prices ramped up to $96.60 a barrel.
“The US and Iran exchanged fire over the weekend, with both targeting tankers as the battle for control over the Strait of Hormuz continues,” Capital.com senior market analyst Kyle Rodda said.
“The dynamic is likely to keep a hefty risk premium in oil prices, which could weigh on risk appetite in a market that’s likely to be slightly more illiquid than normal.”
Gold stocks were under pressure as the pivot in US interest rate expectations weighed on the precious metal, which is trading at $US4,111 ($5,704) an ounce.
Mega miners BHP, Rio Tinto and Fortescue acted as a ballast for the broader sector, each up more than 0.6 per cent as iron ore futures topped $US100 a tonne for the first time since early July.
Financials traded just below flat as investment managers, insurers and Macquarie dipped, while the big four were mixed but ultimately unconvincing in any direction.
Australia’s technology sector underperformed the market, tumbling 2.2 per cent in a broad-based sell-off.
Consumer-facing stocks edged lower, with staples and cyclicals shedding 0.3 per cent and 0.2 per cent respectively.
In company news, naval shipbuilder Austal confirmed it had been in takeover talks with US investment group Wildcat Infrastructure, but had not received a proposal.
Meanwhile, Worley has won contracts to provide engineering, procurement and construction management services at BHP’s Olympic Dam and Carrapateena copper projects in SA.
Southern Cross Media has appointed Ryan Stokes as its executive chair, seven months after his father Kerry Stokes stepped down from the company.
Kogan’ founder and chief executive Ruslan Kogan is putting his remuneration package where his mouth is, and stands to make $50 million or nothing over the next five years.
Over the period, Mr Kogan will make $50 million if Kogan’s share price holds above $7.44 (up from their current $3.34 price), or donate a minimum wage salary to charity.
Beauty product retailer Adore has made Kylie Archer its permanent chief financial officer, after taking over from Marcus Crow on an interim basis in July.
The Australian dollar is buying 72.03 US cents, down slightly from 72.04 US cents on Friday at 5pm.
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