ASX holds near six-month low; Johns Lyng drops 12pc, energy rallies

A rally in energy stocks pushed the sharemarket higher on Monday, although investors remained cautious after a barrage of US tariff announcements last week unleashed chaos in equity markets.

The S&P/ASX 200 Index edged up 14.1 points, or by 0.2 per cent, to 7962.3 points on Monday afternoon after hitting a six-month low on Friday. The All Ordinaries Index rose by a similar amount as seven of the bourse’s 11 sectors finished higher.

Trading was subdued, however, amid expectations for another volatile week for financial markets with 25 per cent tariffs on steel and aluminium exported to the United States expected to start on Wednesday.

US President Donald Trump’s refusal to rule out recession also bolstered risk-off sentiment after the government’s back and forth approach to tariffs last week roiled global markets.

A weaker-than-expected inflation print from China hasn’t helped, with consumer prices falling to minus 0.7 per cent in February, undercutting forecasts, while core inflation edged lower to 0.3 per cent.

That did not prevent traders snapping up some of the ASX’s unloved energy stocks on Monday despite oil trading around $US70 a barrel. Oil and gas producer Woodside gained 1.9 per cent to $22.91 and Santos 1.3 per cent to $6.10. The energy sector had slumped almost 6 per cent last week as tariffs heightened demand concerns and Woodside went ex-dividend.

“Even when there’s a bearish undertone, you can have bounces as the bulls try and push the market higher,” AMP chief economist Shane Oliver said. “[They are] picking up the sectors that were hit hardest on the way down. We saw an element of that today – but it was a mediocre bounce”.

Coal miners also boosted the bourse, with Yancoal lifting 2.5 per cent to $6.12 and Whitehaven Coal 3.1 per cent to $5.90. While benchmark Newcastle coal futures contract slipped 1.4 per cent to $US103.25 a tonne, it posted its second-best week of gains this year.

Sharemarkets gains were offset by index heavyweight CSL, which dipped 1.6 per cent to $255.40 after the biotech giant traded ex-dividend.

And cryptocurrency investors were spooked by Trump’s comments about a possible recession, sending bitcoin tumbling below $US81,000.

Stocks on the move

In corporate news, Star Entertainment is reviewing a rescue offer from American casino giant Bally’s following the Queen’s Wharf takeover it signed on Friday with two Hong Kong investors. The shares remained suspended from trading.

Johns Lyng Group slumped 12.5 per cent to $2.45 on news that the insurance repairer would be booted from the ASX 200 at the upcoming quarterly rebalance.

Rio Tinto also boosted the bourse, advancing 3.1 per cent to $118.71. The mining giant scrapped plans to raise as much as $US5 billion ($8 billion) in a share sale after it received pushback from investors.

And Mayur Resources jumped 7.4 per cent to 29¢ after businessman Gerry Harvey – the founder and chairman of Harvey Norman – became a major investor in the Papua New Guinea-focused miner.