The ASX 200 saw a clear sectoral divide at midday Tuesday, with energy stocks rallying nearly 1% while healthcare shares came under pressure, falling over 1%.
The contrasting performance comes amid global market volatility, with oil prices at multi-year lows and renewed tariff concerns weighing on sentiment.
Energy Sector Rises Despite Oil Price Lows
Energy stocks led the ASX 200 higher, defying a backdrop of oil futures settling at their lowest levels since February 2021. The sector’s resilience was underpinned by upbeat corporate guidance and strategic cost-saving initiatives.
Viva Energy Group (ASX: VEA) remained a focal point after reaffirming its guidance for first-half 2025 non-refining EBITDA in the range of AU$270 million to AU$330 million. The company also outlined plans to deliver AU$30 million in convenience and mobility synergies and AU$50 million in group cost savings during the second half of the year.
This operational discipline, combined with the successful integration of recent acquisitions, has helped bolster investor confidence even as oil prices remain subdued.
Viva Energy’s strong half-year performance included a 6% increase in group fuel sales and a 25% rise in EBITDA, driven by growth in both its fuel and convenience businesses.
The company’s focus on expanding its convenience and mobility segment, including the completed acquisition of OTR Group, is expected to further enhance earnings and market reach in the coming years.
Healthcare Sector Under Pressure
In stark contrast, the healthcare sector lagged, shedding more than 1% by midday. The decline followed a broader sell-off in global equities, triggered by new tariff announcements from US President Donald Trump that rattled investor sentiment across defensive sectors.
Sigma Healthcare (ASX: SIG) was among the notable laggards, with shares sliding over 4% after the company updated the market on its financial performance post-merger with Chemist Warehouse Group.
Sigma reported that its normalized EBIT growth for the nine months to March 31 was broadly consistent with Chemist Warehouse Group’s 36% increase in the fiscal first half. However, the company also disclosed transaction costs of AU$42.4 million incurred up to March 31, which weighed on statutory earnings.
The merger between Sigma and Chemist Warehouse is being accounted for as a reverse acquisition, with Chemist Warehouse treated as the accounting acquirer. This means Sigma’s upcoming FY25 results will include a full year of Chemist Warehouse’s financials and only partial Sigma results post-merger, a factor investors will be watching closely in the next reporting cycle.