Price measures are expected to accelerate further amid an escalating energy crisis that has sent domestic wholesale prices of power and gas soaring. The Australian Energy Regulator approved price increases of up to 18 per cent in NSW and 12 per cent in Queensland from July 1.
This, combined with Saudi Arabia raising oil prices sharply for its crude sales in July because of tight supply, has lifted energy stocks 2.1 per cent.
Woodside Energy climbed to a seven-week peak during the session as Brent crude prices reached $US120 a barrel. It closed 3.2 per cent higher at $32.83. The company received a lift after Morgan Stanley raised its price target to $40 because of a strong pricing environment, particularly for LNG, caused by the war in Ukraine.
Whitehaven Coal gained 0.7 per cent to $5.45 and climbed to its highest in more than a decade. Santos rose 2 per cent to $8.57, its highest since early 2020. Beach Energy was up 1.4 per cent at $1.845, a level last seen early in the previous year.
Out of favour
Cooper Energy jumped 7.4 per cent to $0.29 after upgrading its production and sales volume guidance and a substantial increase in wholesale spot prices for gas in Sydney and Victoria.
All four big banks posted losses, dragging on the broader market. Commonwealth Bank fell 0.5 per cent to $104.68, Westpac retreated 0.3 per cent to $23.92 and ANZ eased 0.8 per cent to $24.82. Shares in National Australia Bank dipped 0.5 per cent to $31.11. The bank is raising at least $1 billion in a new hybrid issue.
Magellan was the index’s biggest loser after its funds under management dropped to $65 billion from $68.6 billion in a month. It sank to an eight-year low and closed 13.9 per cent lower at $12.85
Shares in mining giants came under pressure and BHP Billiton was 0.9 per cent lower at $46.34. Fortescue Metals fell 0.3 per cent to $21.4 and Rio Tinto 0.2 per cent to $115.77.
Lithium stocks also lost ground. Novonix was off 3.8 per cent and Pilbara Minerals 0.8 per cent. Liontown Resources shed 2.7 per cent and Allkem 1.8 per cent.
The ACCC is examining competition issues in information search and broking services, conveyancing software, practice management software, and lodgement settlement services. It is also scrutinising whether Dye & Durham, Link or the electronic conveyancing group PEXA, of which Link owns 43 per cent, might inhibit or frustrate the ability of rivals to compete.
Betting giant Tabcorp was the biggest outperformer after the state of Queensland announced tax reforms that are expected to boost revenues for the troubled outfit. Tabcorp shares bounced 5.3 per cent to $0.99.
The Sunshine State will lift its point of consumption tax from 15 per cent to 20 per cent as of December and will increase the industry’s share of that revenue. Tabcorp is lobbying for similar overhauls in the more critical states of NSW and Victoria.
