The S&P/ASX 200 (ASX: XJO) strengthened into the close on Monday, managing a loss of just 0.3% to start the week.
Behind the headline though was a two-speed market with only the energy and materials sector finishing higher, and significantly so, up 1.2% and 1.3% to the positive.
The global energy crisis is now the motivating factor for markets with concerns the cost of oil may slow down the economic recovery. Woodside Petroleum Limited (ASX: WPL) continues to benefit, finishing 0.4% higher.
ASX gold miners benefitted from a weaker AUD, with Newcrest Mining Ltd (ASX: NCM) up 1.9% along with Rio Tinto Limited (ASX: RIO).
IAG’s pandemic reprieve, Ampol takes Z
Insurance Australia Group Ltd (ASX: IAG) shares rose by 3.1% after a key court proceeding found in favour of the insurer for a lot of pending pandemic shutdown cases.
Ampol Ltd (ASX: ALD) rallied 2.9% after gaining approval for its acquisition of dual-listed Kiwi company Z Energy Ltd (ASX: ZEL) for $1.86 billion.
The deal sees the group take ownership of NZ’s largest fuel distributor, holding a market share of over 40%. It is expected to deliver significant synergies and free cash flow generation post-2022.
Elsewhere, Platinum Asset Management Ltd (ASX: PTM) fell 5.6% after Friday’s late announcement regarding an acceleration of outflows.
Falling Star
After throwing its hat in the ring as the ‘white knight’ to Crown Resorts Ltd (ASX: CWN) before pulling its offer, shares in Star Entertainment Group Ltd (ASX: SGR) tumbled 22.9% on Monday.
Star Entertainment share price chart
The sell-off came after a media investigation apparently undercovered a number of similarities to the issues facing Crown along with insufficient Anti-Money Laundering procedures.
Management has denied the claims but it looks set to undergo a lengthy investigation which never ends well. NZ’s Sky City Entertainment Group (ASX: SKC) also fell by 5.4%.
API upgrades guidance
Takeover target Australian Pharmaceutical Industries Ltd (ASX: API) upgraded guidance, suggesting earnings of $70 million were more likely following much stronger than expected performances from its Priceline network and elevated distribution volumes.
ASX 200 today
The ASX 200 is expected to open lower on Tuesday after all three US benchmarks fell by around 0.7% overnight. To find out more, check out my US stock market report.
