Markets wrap: Energy companies outperform as ASX tumbles into the red

There were strong gains for oil, gas and coal companies but not much else during Thursday’s ASX session.

All but two ASX 200 sectors finished in the red on Thursday as the market lost 0.8 per cent. Picture: NCA Newswire / Gaye Gerard

Energy companies enjoyed surging oil prices but there was little else to cheer about during Thursday’s Australian sharemarket session.

All but two sectors finished in the red as the benchmark ASX 200 suffered a 58.1 point, or 0.8 per cent, loss to 7175.9, its lowest close of the past five days.

The high-growth technology, payments and healthcare sectors all took a beating as another round of hawkish US Fed speak and a 50 basis point interest rate hike by the Bank of Canada amplified fears around inflation.

The heavyweight banks and miners were also in the dumps, and there was no help from blue-chip retailers, property firms, travel stocks, or the telecommunications sector after JPMorgan boss Jamie Dimon issued a dire economic warning.

The wider All Ordinaries fell 62.1 points, or 0.8 per cent, to close at 7400.8 while the Aussie dollar tracked lower to 71.59 US cents at the local close.

The ASX 200 suffered a 58.1 point, or 0.8 per cent, loss to 7175.9 on Thursday. Picture: NCA Newswire / Gaye Gerard.

Higher oil prices may be giving power consumers a headache but energy and utility sector investors were clearly enjoying the benefits on Thursday.

Shares in Woodside Energy leapt 5.2 per cent to $31.75, helped along by a large block trade which likely cleared legacy selling of unwanted stock from the company’s petroleum demerger.

Gas giant Santos improved by 1.6 per cent to $8.33, Beach Energy rose 1.7 per cent to $1.775, Origin Energy was 2.7 per cent higher at $6.07 and coalminers Whitehaven and New Hope each added 1.6 per cent to $5.24 and $3.81 respectively.

Pipeline company APA rose 0.4 per cent to $11.45, Ampol grew 0.2 per cent to $33.92 and AGL Energy climbed 0.1 per cent $8.73.

These gains came even as Brent crude futures tracked lower, with Saudi Arabia indicating it was prepared to raise production if Russia’s output is cruelled by new European Union sanctions.

Energy aside, it was a miserable day for the rest of the local index.

Wall Street set a dour tone after more robust US data reinforced Fed hiking expectations.

Further weighing on sentiment were comments from JPMorgan’s Mr Dimon.

Energy companies improved even as Brent futures slipped lower.

“You know, I said there‘s storm clouds, but I’m going to change it … it’s a hurricane,” Dimon reportedly told a banking conference overnight.

“You better brace yourself. JPMorgan is bracing ourselves and we’re going to be very conservative with our balance sheet.”

Beaten down lithium miners IGO, Liontown Resources and Silver Lake Resources managed to bounce back from Wednesday's bloodbath, while there were also gains for packaging giant Amcor, wagering company Tabcorp, investment manager Challenger and rail freight firm Aurizon.

The top end of the market was, however, largely red.

BHP fell 0.1 per cent to $45.61, Rio Tinto was 1.7 per cent lower at $113.01 and Fortescue Metals fell 0.7 per cent to $20.61 to knock the materials sector lower along with gold miners Newcrest, Northern Star and Evolution.

ASX tech stocks fell for a third session.

Macquarie Group plunged 2.7 per cent to $183.29 and Commonwealth Bank dropped 1.2 per cent to $105.44, while ANZ slipped 1.3 per cent to $24.97, Westpac ended 0.7 per cent lower at $23.93 and NAB fell 0.8 per cent to $31.30.

Block Inc lost 5 per cent to $114.58 to continue a miserable couple of days for the tech sector, while Xero fell 3 per cent to $84.78 and Wisetech Global dropped 2 per cent to $40.87.

Blood giant CSL fell 1.8 per cent to $268.62 and Resmed was 1.3 per cent lower at $28.33, as the healthcare sector sagged, with Sonic falling 2.4 per cent to $35.74 and Cochlear 1.8 per cent down at $217.89.

Originally published as Markets wrap: Energy companies outperform as ASX tumbles into the red