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Australia Market falls to 1-week low amid fears over fuel price surge

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Capital Market
Last Updated : Mar 07 2022 | 10:16 PM IST
The Australian share market suffered another round of selloff on Monday, 07 March 2022, as investors remained wary of the inflationary impact from the record-breaking rises in crude oil prices after some global powers reportedly consider a ban on Russian fuel imports.

At closing bell, the benchmark S&P/ASX200 fell 72.24 points, or 1.02%, to 7,038.59. The broader All Ordinaries index fell 74.13 points, or 1%, to 7,321.19.

The top performing stocks in this index were WOODSIDE PETROLEUM and RAMELIUS RESOURCES, up 9.5% and 6.8% respectively. The bottom performing stocks in this index were UNIBAIL-RODAMCO-WESTFIELD and IMUGENE, down 9.46% and 8.16% respectively.

The threat of a potential ban on Russian oil imports spurred a surge in energy prices that investors worry could smother economic growth. Crude oil prices soared, with global benchmark Brent crude jumping 5.7% to $124.87 a barrel. Earlier Monday, it topped $130, the highest level since July 2008. The U.S. equivalent, West Texas Intermediate, rose 5.8% to $122.46.

The war in Ukraine, now in its 12th day, has roiled commodity markets, increased tensions between Moscow and the West and led to Russia being unplugged from much of the global financial system.

Shares of financials went down, with ANZ, NAB and Westpac declining 1-2%, while Block Inc. led tech stocks lower to end down more than 10%.

Energy and metals sectors continued to soar on firmer commodity prices, with BHP and Fortescue Metals Group rising 0.9% and 1.8%, respectively. Oil and gas explorer Woodside Petroleum surged 9.5% and Santos added 5.3% as oil prices spiked to 2008 highs.

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CURRENCY NEWS: The Australian dollar was at $0.7408, following a general upward trek last week from below $0.72.

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First Published: Mar 07 2022 | 5:07 PM IST

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