Australian sharemarket edges higher, buoyed by mining and energy stocks

The Australian sharemarket inched higher despite a negative US lead, with gold miners the star performers, while Woodside and Santos reported record numbers as oil prices climbed to multi-year highs. Snapping a two-day losing streak, the benchmark S&P/ASX200 index finished just 9.9 points or 0.14 per cent higher at 7342.4, while the All Ordinaries Index firmed 12.3 points or 0.16 per cent to 7668.9. CommSec’s Ryan Felsman and Divik Nigam said jitters surrounding rising US interest rates dented sentiment on Wall Street, with the tech-heavy Nasdaq index faring the worst – down 1.2 per cent and notching up its 66th correction since 1971. Among local tech stocks, Dicker Data fell 6.08 per cent to $13.32 and Jack Dorsey’s Block made its ASX debut after taking over Afterpay, starting at $176.08 and closing 55 cents higher. OMG chief executive Ivan Tchourilov said the mining and energy sectors fared the best, with Northern Star Resources leading the ASX200, rocketing 11.2 per cent to $9.73. “The gold mining company released its quarterly report this morning, indicating it had produced in line with expectations on two of three major mining sites and confirmed that it’s on track to meet FY22 expectations,” Mr Tchourilov said. RBC Capital Markets analyst Alexander Barkley described it as a “reasonable” quarter, noting Northern Star’s Pogo mine in Alaska had dragged down the numbers, saying the operation would likely struggle to meet its full-year guidance. Another producer of the precious metal, Evolution Mining, jumped 8.92 per cent to $4.15, making it the second best performer in the top 200. Copper and gold producer Sandfire Resources issued its quarterly, maintaining its full-year production guidance, but lifting its costs forecast, saying mining, transport and shipping costs had all risen. Sandfire shares gained 2.5 per cent to $7.37, still well below RBC Capital Markets’ target price of $8.75. Mr Tchourilov said Australian coking coal, an essential input in steel production, hit a record high of $US430 per tonne on Wednesday despite China’s ongoing ban. “The high has been attributed partly to increased transport costs as a result of the ongoing spread of Omicron,” he said. Coronado Global Resources, which mines the commodity, reported lower sales volumes in the December quarter but much higher prices, boosting its shares by 5.94 per cent to $1.51. “Strong ex-China demand, combined with continued supply tightness, exacerbated by a La Nina weather pattern in Queensland, has elevated Australian prices,” the company explained. Coronado said it expected prices to moderate this year as supply recovered. Rio Tinto rose 3.18 per cent to $113.41, BHP appreciated 3.1 per cent to $48.01 and Fortescue rallied 4.65 per cent to $21.39. WTI crude oil pressed to a seven-year high overnight, proving demand remained robust despite Omicron’s spread, Mr Tchourilov said. Oil Search acquirer Santos reported record annual production and sales revenue, while Woodside booked its highest ever quarterly sales revenue. Santos lifted 0.83 per cent to $7.26, while Woodside gained 1.53 per cent to $25.81. Fertility care group Virtus Health leapt 7.62 per cent to $7.20 after announcing it had received a takeover offer from London-based investment firm CapVest Partners. Women’s fashion group Mosaic Brands, which owns labels including Rockmans and Katies, rose 3.33 per cent to 62 cents after flagging first half earnings would exceed broker estimates, with online sales surging and now accounting for 40 per cent of revenue. Just Jeans and Smiggle owner Premier Investments slid 3.14 per cent to $27.76. The retailer had suffered a general slide in its share price going back to late November, Mr Tchourilov noted. Another loser was digital travel business Webjet, down 3.5 per cent to $5.21 due to ongoing uncertainty in the travel industry, he added. Beacon Lighting jumped 6.12 per cent to $3.12 after providing a trading update saying its first half net profit “appears to be a significant increase to analysts’ expectations” thanks to the pandemic driving strong demand for household goods such as lighting and ceiling fans. Online retail marketplace Mydeal.com.au reported a record quarter, with RBC Capital Markets analyst Chami Ratnapala saying group revenue, in-stock segment and active customers beat expectations. Shares in the company fell 1.43 per cent to 69 cents, however. ANZ inched two cents higher to $28.58, Commonwealth Bank gave up 0.73 per cent to $98.61, National Australia Bank backtracked 1.27 per cent to $28.70 and Westpac shed 0.6 per cent to $21.11. The Aussie dollar was fetching 72.35 US cents, 53.09 British pence and 63.73 Euro cents in afternoon trade.