Australian shares closed flat on Monday as losses among energy and technology sectors erased an early mining boost, while tourism-related stocks found some respite as a travel bubble between Australia and New Zealand kicked off.
The S&P/ASX 200 index closed flat at 7,065.6.
Energy stocks slipped 1.4 per cent as oil prices slumped amid a surge in Covid-19 infections in India and other countries. Woodside Petroleum fell nearly 2 per cent while Santos lost 1.3 per cent.
Technology stocks shed 0.8 per cent, with buy-now-pay-later heavyweight Afterpay losing nearly 1 per cent.
The mining index rose 0.8 per cent as ironore and copper prices held firm. Rio Tinto gained 1.7 per cent while Fortescue Metals Group added 1.8 per cent.
Orocobre soared 5.7 per cent after the lithium miner said it was buying smaller domestic peer Galaxy Resources for $1.4 billion to create the world’s fifth-most valuable producer of the key raw material for electric vehicle batteries.
Meanwhile, hundreds of passengers from Australia began arriving in New Zealand airports on Monday, as open-border system between the countries allows Australia residents to fly across Tasman Sea without having to quarantine.
Travel stocks edged higher, with Helloworld Travel advancing 2.4 per cent and Sydney Airport Holdings rising 0.5 per cent.
“The travel industry took a hit last year due to the pandemic and the ones that survived now started to look of good value to most people,” FP Markets – APAC Chief Executive Officer Nick Twidale said.
“But for the travel sector to really pick up and be performing anywhere near like last year, we need the rest of the world to come out of the pandemic, with better vaccine rollouts,” he added.
New Zealand’s benchmark S&P/NZX 50 index was up 0.7 per cent at 12,767.83, with Auckland Airport gaining the most after rising 4.7 per cent.
