The Australian sharemarket edged higher after gold and oil prices surged, amid fears of an imminent Russian invasion of Ukraine, boosting the stock of local producers.
The benchmark S&P/ASX200 index firmed 26.6 points or 0.37 per cent to 7243.9, while the All Ordinaries Index added 19.3 points or 0.26 per cent to 7535.1.
IG markets analyst Kyle Rodda said Wall Street tumbled on Friday as investors worried about the potential economic and financial consequences of an invasion.
US National Security Advisor Jake Sullivan warned it could happen any day, adding to concerns about inflation and interest rates, sending the S&P500 tumbling 1.9 per cent.
Mr Rodda said the developments, as Russian troops amassed on the Ukrainian border, represented another potential supply shock for the global economy.
“Gold flew on fears of a Russia isolated further from the global financial system,” he said.
“Energy prices pushed to new highs on supply fears.”
On the local bourse, it was a cautious start to the session followed by choppy trade as Aussie investors also fretted over Ukraine and Russia, CommSec analyst Steven Daghlian said.
Global crude oil prices hit fresh seven-year highs on Monday morning in Asian trade, with the global benchmark Brent crude oil price above $US95 a barrel.
“Rising geo-political tensions in Eastern Europe could be the major catalyst needed to justify crude oil’s potential move above $US100 a barrel,” CommSec senior economist Ryan Felsman said.
The local energy sector was unsurprisingly by far the strongest, with Santos jumping 4.04 per cent to $7.72 and Woodside gaining 3.63 per cent to $27.43.
Beach Energy delivered strong first half results and rocketed 9.43 per cent to $1.62, making it the best performer on the ASX200.
The report showed a 66 per cent surge in net profit compared to the same period in fiscal 2021, while full-year production guidance was maintained.
The top gaining stocks were largely gold producers, with Regis Resources rallying 8.15 per cent to $1.99, Evolution Mining surging 7.9 per cent to $3.96, Bellevue Gold leaping 7.4 per cent to 87 cents and Ramelius Resources jumping 7.6 per cent to $1.48.
OMG chief executive Ivan Tchourilov said a strong first half report from Bendigo and Adelaide Bank lifted the rest of the banks, with the company announcing a 32 per cent net profit increase compared to the same period in fiscal 2021.
Bendigo and Adelaide Bank declared an interim dividend of 26.5 cents per share, up from 23.5 cents previously, and its shares gained 4.43 per cent to $9.67.
ANZ added 1.37 per cent to $28.20, Commonwealth Bank improved 1.5 per cent to $100.04, National Australia Bank rose 1.98 per cent to $30.43 and Westpac advanced 4.83 per cent to $23.88.
Westpac completed its buy-back, repurchasing about 4.6 per cent of issued shares back from the market, Mr Tchourilov said.
Crown Resorts finally backed Blackstone’s fourth takeover offer, advising shareholders, including reclusive billionaire James Packer, to accept the US private equity giant’s improved $13.10 per share bid.
Shares in the embattled gambling giant lifted 2.02 per cent to $12.64, a lift Mr Tchourilov described as “mere” and well short of Blackstone’s offer.
“Investors appear to be hesitant in closing the price gap due to regulatory concerns and pending shareholder approval,” he said.
“Crown and Blackstone still have a variety of hxjmtzywoops to jump through before it’s settled, and you can bet there will be close eyes on both of them.”
Still, the price differential might be enough enticement for less risk-averse investors to buy into Crown, Mr Tchourilov said.
JB Hi-Fi, which owns The Good Guys, reported a 9.4 per cent fall in first half profit, but it was up an impressive 68.8 per cent over a two-year period.
JB Hi-Fi also announced a $250m share buyback and an interim dividend of $1.63 per share, down from $1.80 previously.
JB Hi-Fi shares bounced 5.42 per cent to $51.71.
KFC and Taco Bell franchisee Collins Foods revealed it was no longer in talks with Retail Zoo about a potential takeover of the Boost Juice and Betty’s Burgers brand owner, and said it didn’t intend to comment further.
Collins Food shares inched two cents lower to $12.02.
In the mining sector, Rio Tinto eased 0.64 per cent to $121.58 and BHP lost 1.09 per cent to $48.33.
Local tech stocks were poor performers after the Nasdaq slumped, with Brainchip Holdings diving 8.64 per cent to $1.48 and Zip sliding 5.26 per cent to $2.70.
The Aussie dollar was buying 71.21 US cents, 52.56 British pence and 62.74 Euro cents in afternoon trade.
