While the fresh wave of attacks exchanged between Iran and Israel in recent days ended the positive momentum for US and European markets, the Australian Securities Exchange (ASX) continues its upward trajectory.
The S&P/ASX200 rose 20.7 points, or 0.32%, to 8,575.1 points by 10.37am (AEST).
Over the past five trading sessions, the index has gained a further 0.7% and is just 0.74% off its 52-week high.
Eight of the 11 sectors gained ground, led by the energy sector which rallied 1.04% on Israel’s attack on Iran’s nuclear facilities.
ANZ Economics and Research FX Analyst Felix Ryan says Iran retaliated, launching more than 100 drones towards Israel.
“Iran’s Supreme Leader, Ayatollah Ali Khamenei, vowed Iran would act forcefully to avenge the strike,” Ryan notes.
“This marks a dramatic escalation in the conflict that has hung over the oil market since Hamas attacked Israel about 20 months ago.
“The US had been trying to reach a deal with Iran over its nuclear program. Talks scheduled for the weekend were cancelled, with the likelihood of a deal becoming more remote despite President Trump urging Tehran to make a deal ‘before it is too late’.”
This saw the uranium miners dominate early trade on Monday, with Deep Yellow (ASX:DYL) spiking 19.69% to $1.55, Paladin Energy (ASX:PDN) jumping 13.17% to $7.13 and Boss Energy (ASX:BOE) rally 12.77% to $4.15.
Santos Energy (ASX:STO) and Beach Energy (ASX:BPT) rounded out the top five with advances of 11.28% to $7.75 and 5.38% to $1.37, respectively.
Meanwhile, the utilities sector lifted 0.63%, materials advanced 0.22% and industrials was up 0.13%. The financial sector, however, dipped 0.31%.
The S&P/ASX200 is Australia’s leading share market index and contains the top 200 ASX-listed companies in terms of market capitalisation, and accounts for about 80% of the country’s equity market. The index is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation.
It is recognised as the institutional investable benchmark in the country.
Write to Angela East at Mining.com.au
Images: Unsplash
