ASX Today: Energy stocks hold the line as Middle East tensions lift oil

The Australian sharemarket was holding steady today, with energy stocks helping offset weakness across technology as escalating tensions in the Middle East pushed crude prices higher.

The ASX 200 was up 11 points intraday. The move came despite a broad sell-off on Wall Street on Friday, after stronger US jobs data increased expectations of a Federal Reserve rate hike.

Energy stocks were among the strongest performers, with Woodside and Santos both higher, while coal producers Whitehaven Coal and New Hope also gained 6 per cent and 3.7 per cent respectively.

But technology stocks struggled, with Xero and WiseTech both down more than 3 per cent. Ingenia Communities was the standout performer, surging after rejecting an unsolicited $1.94 billion takeover proposal from private equity giant Warburg Pincus.

Warburg offered $4.75 per security to acquire the company, but Ingenia’s board said the proposal substantially undervalued the business. The rejection sent Ingenia shares sharply higher, with the stock up more than 20 per cent at one point in morning trade.

Bubs Australia also surged after securing permanent US Food and Drug Administration authorisation for three infant formula products. Shares jumped around 40 per cent in morning trade as investors responded to the long awaited approval.

Worley rallied 3.5 percent after BHP awarded it contracts covering proposed copper expansion projects in South Australia.

Tamboran Resources was another strong mover, up more than 8 percent after announcing first gas sales from the Beetaloo Basin.

Kogan was also in focus after the online retailer finalised a new remuneration package for founder Ruslan Kogan. His annual salary has been cut by almost $850,000 to $50,000, which Kogan plans to donate to charity. However, the new performance based structure could deliver him around $50 million if ambitious shareholder return targets are met.

And Southern Cross Media was lower after Ryan Stokes was appointed chairman with immediate effect.

That’s the ASX Today, thanks for listening and I’ll see you tomorrow. 

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