Australian shares closed higher on Monday as banks, healthcare stocks and gold miners rose on hopes tied to progress in Iran peace talks. The S&P/ASX 200 gained 0.47% to 9,019.30 points, even as energy stocks slid on falling oil prices. Tim Waterer of KCM Trade said the market sees the developments as a potential positive but not yet a turning point.
The S&P/ASX 200 closed 0.47% higher at 9,019.30 points on Monday. Banks, healthcare and gold stocks led the gains as U.S. President Donald Trump's remarks on Iran and fresh hopes of reopening the Strait of Hormuz lifted sentiment. Trump said over the weekend that Iran and other Middle Eastern nations had requested time to finalize a deal for the "immediate, complete and total" reopening of the strait.
Banks and healthcare lead the advance
Financials rose 0.4%, with three of the "Big Four" banks advancing between 0.2% and 0.8%. The healthcare subindex and consumer staples each gained about 1%, with 4DMedical leading the healthcare sector and Treasury Wine Estates topping the consumer staples pack. Treasury Wine Estates also ranked among the session's best performers, rising 6.09% to 5.23.
Gold miners rise, energy stocks fall
Gold miners added 0.7% as bullion prices climbed. December gold futures rose 0.41% to $4,123.82 a troy ounce.
Energy stocks lost 1.2% in their weakest session in a week on declining oil prices. Among oil majors, Woodside Energy shed 1.4% and Santos fell 1.9%. September crude oil fell 6.38% to $79.27 a barrel, while October Brent crude dropped 5.55% to $83.05 a barrel.
Caution lingers over the ceasefire
Tim Waterer, chief market analyst at KCM Trade, said risk appetite is likely to remain measured and selective until any ceasefire proves durable. Markets are pricing in almost no chance of the Reserve Bank of Australia raising its 4.35% cash rate next week, with little expectation of a move in September.
Advancers outnumbered decliners 554 to 525 on the Sydney Stock Exchange, with 401 stocks unchanged. New Zealand's S&P/NZX 50 index advanced 0.6% to 13,774.93 points.
Sources: Investing.com, Investing.com
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