ASX closes 0.1 per cent higher on Monday, as energy sector struggles amid oil price drop

The Australian stock market continues to see positive results despite a drop in oil prices causing headaches for the energy sector.

The Australian stock market has continued its three day winning trading streak despite a drop in oil prices causing headaches for the energy sector.

At the closing bell, the benchmark ASX 200 gained 0.1 per cent, or 9.2 points, to close Monday at 7652.8 while the broader All Ordinaries index added a similar amount to 7908.1.

The ASX has closed on a high for the third day running. Picture: NCA NewsWire / Gaye Gerard

Six of 11 industry sectors finished in the green, led by consumer discretionary, tech, health care and financials.

Energy stocks were the hardest hit falling 2.1 per cent as oil prices dropped, with BHP losing 1.3 per cent and Santos fell 5.3 per cent ex-dividend.

Woodside also lost 1.7 per cent as crude oil fell 2.5 per cent at the close.

Rio Tinto also lost 1.5 per cent and Fortescue fell 1.3 per cent.

On Monday, Aussie Broadband’s bid to take over fellow retail service provider Superloop was thwarted after the board rejected the offer.

The country’s fifth largest provider of broadband bought 19.9 per cent of shares in Superloop while also making an indicative offer $466.6m in its takeover bid to purchase a total value of 95 cents a Superloop share.

Aussie Broadband has failed in its bid to acquire Superloop. Picture: Supplied

Superloop said on Monday its board and its advisers had considered Aussie Broadband’s offer but ultimately found it was “opportunistic and fundamentally undervalues Superloop”.

“Consequently, the board does not intend to engage with ABB on the indicative proposal,” Superloop said in a statement.

The decision to reject the offer proved impressive to shareholders, with shares jumping 14 per cent at the close on Monday.

The offer came after the telco last week announced its half-year results noting it had achieved “another period of strong financial performance”.

“The 2024 financial year is the first of our three-year ‘Double Down’ strategy intended to double the revenue in the business while expanding margins and the performance in this first half demonstrates its execution is tracking strongly against this plan,” it said.

The Aussie dollar dropped 0.1 per cent to US66c on Monday.