ASX 200 inches up as energy stocks offset tech weakness. Oil rises on Middle East tensions. Ingenia jumps 20% on Warburg rejection, Bubs jumps 40% on FDA approval.
The Australian sharemarket edged higher, with the ASX 200 adding 11 points intraday. Energy stocks led the gains as crude oil rose on heightened Middle East tensions, according to exchange data, offsetting a sell-off in technology stocks after stronger US jobs data revived rate hike expectations.
Woodside and Santos both gained. Coal producers Whitehaven Coal and New Hope advanced 6% and 3.7% respectively. The rally in energy names followed a rise in crude oil, which climbed as geopolitical risk in the Middle East escalated. The crude oil profile shows the commodity sensitive to supply disruption and regional instability.
Technology stocks were the laggards. Xero and WiseTech each fell more than 3%. The sell-off mirrored a broader decline on Wall Street on Friday, where the S&P 500 dropped after the payrolls report showed stronger-than-expected hiring, reducing the probability of a Fed rate cut in the near term.
Beyond the sector divergence, several company-specific stories drove outsized moves. Ingenia Communities surged more than 20% in morning trade after rejecting an unsolicited A$1.94 billion takeover bid from Warburg Pincus. The private equity firm offered A$4.75 per security. Ingenia's board said the proposal substantially undervalued the business. The rejection sent the stock to its biggest intraday gain in years.
Bubs Australia jumped about 40% after securing permanent US Food and Drug Administration authorisation for three infant formula products. The approval, which had been long awaited, opens the American market to the Australian company. Shares traded at their highest level since the FDA first flagged regulatory issues in 2022.
Worley rallied 3.5% after BHP awarded it contracts covering proposed copper expansion projects in South Australia. Tamboran Resources rose more than 8% after reporting first gas sales from the Beetaloo Basin, a milestone for the shale gas developer.
Kogan was also in focus after finalising a new remuneration package for founder Ruslan Kogan. His annual salary was cut to A$50,000, which he plans to donate to charity. The new performance-based structure could deliver him about A$50 million if ambitious shareholder return targets are met.
Southern Cross Media fell after Ryan Stokes was appointed chairman with immediate effect.
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