ASX lifts on mining and energy stocks

The Australian sharemarket relief rally continued for the third straight day on Tuesday, although the afternoon’s trading session will likely disappoint investors.

Australia’s sharemarket erased most of its gains during the afternoon’s session following tensions out of the Middle East frightening the market during late trading.

The benchmark ASX200 nudged higher by 6.3 points or 0.08 per cent, to close on Tuesday at 7860.40 points.

The broader All Ordinaries also closed up just 7.80 points or 0.10 points to 8,089.90.

The Australian dollar fell 0.21 per cent and is now buying 63.68 US cents.

In a broad market rally, eight of the 11 sectors finished in the green, with utilities, property and energy the outperformers. The financials, consumer discretionary and consumer staples sectors fell.

ASX lifted on Tuesday for the third straight session. Picture: NewsWire / Max Mason-Hubers

Australia’s markets rose strongly at the open, only to sink in the afternoon after Israel launched air strikes on Northern Gaza, just days after the US attacked the Houthis in Yemen, which raised geopolitical risks.

In response oil producers rose with Beach Energy up jumped 1.78 per cent to $1.43, AGL is soared 1.69 per cent to $10.80 Santos rose 0.48 per cent to $6.32, aided by news of a new oil discovery and Woodside finished in the green up 0.26 per cent to $22.87.

IG market analyst Tony Sycamore said the news of Israel’s air strikes on Gaza, coming just 48 hours after the US attacked the Houthis in Yemen has raised geopolitical risks in the region.

“After a couple of months of easing geopolitical tensions in the Middle East, things are starting to simmer, with crude oil prices likely to rise,” he said.

The rising geopolitical concerns sent the price of gold to a fresh record high of US$3015.

Regis Road gained 1.12 per cent to $3.61, Perseus Mining climbed 0.96 per cent to $3.16, and Northern Star Resource rose 1.12 per cent to $17.98.

Mr Sycamore said other Australian commodities like coal and uranium were also benefiting from better than expected news.

Eight of the 11 sectors finished in the green. Picture: NewsWire / Max Mason-Hubers

“Coal prices are also up on some good news from the Chinese economy with some measures announced to boost consumer spending and uranium stocks rose after Amazon said it was begging for five new energy plants,” he said.

However, the rise in coal and uranium stocks were offset by a mixed day for the iron ore miners.

Fortescue shares were hammered, down 1.71 per cent to $16.66, while BHP finished slightly in the green up 0.10 per cent to $39.62 and Rio Tinto rose 0.28 per cent to $119.53

The ASX200 followed Wall Street extending its relief rally in the morning session, surging after the all-important retail sales control group, which feeds into GDP, surged 1 per cent, against expectations of a 0.4 per cent growth.

It was a mixed day for the big banks with index heavyweight Commonwealth Bank slipped 0.3 per cent to $144.20 at the close and NAB dropped 1.96 per cent to $32.59. On the other hand Macquarie 2.3 per cent to $196.10, while Westpac rose 0.97 per cent to $30.18 and ANZ jumped 0.66 per cent to $28.88.

Originally published as ASX lifts on mining and energy stocks