Weekly | ASX Pullback: WDS, STO Lead Energy Rally, COL, SIG Defensives Hold, YAL Climbs

As of the close on Friday, $S&P/ASX 200(XJO.AU)$ closed at 8,428.40, down 1.72% in the past 5 days.

The ASX 200 fell for a third straight week as the war in the Middle East kept energy costs elevated and forced markets to price in a more aggressive interest rate path.

However, the following five Australian stocks bucked the trend, rising by at least 4%.

These moves occurred against a mixed ASX backdrop (some selloff in non-commodity names), with energy/coal names benefiting most from commodity rebounds and defensives like Coles/Sigma holding firm on fundamentals.

1. $WOODSIDE ENERGY GROUP LTD(WDS.AU)$ +9.66%

The surge was primarily commodity-driven amid a volatile ASX session where many stocks faced selling pressure.

• Oil price spike on geopolitical risks: Brent crude jumped to US$110.40 per barrel overnight due to Middle East conflict concerns threatening global supplies, directly boosting energy producers like Woodside.

• Sector-wide energy rally: The S&P/ASX 200 Energy index rose nearly 5%, with WDS hitting a two-year peak as oil and LNG demand sentiment strengthened.

• Strong operational backdrop: Record recent production (e.g., full-year 198.8 MMboe) and long-term LNG growth outlook supported confidence, even as the stock avoided the broader market selloff.

• Attractive valuation and technicals: TTM P/E 16.87, Price/Sales (TTM) 3.53, trading well above the 50-day SMA of 26.97 (near $33+ levels intraday) with Market Cap A$64.07B and low beta (-0.03), reinforcing buyer interest.

2. $SANTOS LIMITED(STO.AU)$ +5.98%

Santos moved in tandem with the energy sector on the same commodity tailwinds.

• Oil price surge spillover: Brent crude hitting US$110.40 amid supply disruption fears from Middle East tensions lifted the entire ASX energy sector.

• Energy index momentum: ASX energy stocks advanced ~5% at midday, with STO jumping over 3% (closing higher) as global oil/gas markets strengthened.

• Production and market support: Ongoing strong oil/gas pricing, recent reserves updates, and 2026 guidance reinforced revenue visibility despite earlier CEO share sales.

• Valuation and technical backing: TTM P/E 22.71, Price/Sales (TTM) 3.75, trading above the 50-day SMA of 6.88 with Market Cap A$26.05B and low beta (0.05), signaling resilience.

3. $COLES GROUP LTD(COL.AU)$ +5.94%

• Defensive appeal amid volatility: Coles outperformed in a session where the broader ASX faced pressure (energy stocks rose while others sold off), as staples offer stability.

• Dividend confirmation: Recent ASX update clarified the interim dividend (ex-date earlier but payout details revised for clarity), supporting income-focused buying.

• Supermarket momentum carryover: Underlying H1 FY2026 strength (sales +2.5%, supermarkets EBIT +14.6%, e-commerce +27%) continued to build confidence despite earlier profit concerns.

• Compelling valuation and technicals: Low Price/Sales (TTM) 0.64, TTM P/E 28.23, trading near/above the 50-day SMA of 21.33 (around $21.43 levels) with Market Cap A$28.76B, appealing for yield seekers.

4. $SIGMA HEALTHCARE LTD(SIG.AU)$ +5.30%

The gain reflected ongoing post-earnings momentum from the Chemist Warehouse merger rather than a new trigger.

• Merger synergies and earnings strength: 1H FY2026 results (revenue +14.9%, normalized EPS +19.4%, EBIT +18.7%) and $13M synergies realized ahead of schedule sustained positive sentiment.

• Network expansion: Chemist Warehouse store growth (13 new +9 planned) and international sales (+24.5% like-for-like) highlighted scalable growth.

• Analyst and strategic tailwinds: Multiple Buy/Hold ratings (e.g., Macquarie, UBS) and new Pharmx alliance for supply chain modernization added support.

• Growth-reflective metrics: TTM P/E 52.16 (premium for 16%+ expected EPS growth), Price/Sales (TTM) 4.64, near the 50-day SMA of 2.927 with Market Cap A$30.71B.

5. $YANCOAL AUSTRALIA LTD(YAL.AU)$ +4.81%

Coal sector strength and operational highlights drove buying despite softer prices.

• Record production focus: Investors highlighted 38.6 Mt saleable coal output and 2026 guidance (36.5–40.5 Mt attributable), offsetting FY25 earnings pressure.

• Strong balance sheet and M&A potential: $2.1B cash position plus reported interest in Anglo American coal assets fueled speculation.

• Dividend and payout appeal: Final dividend (A$0.122, ex-date 19 March) with ~3% yield and 55% payout ratio attracted income buyers (stock rose despite ex-day adjustment).

• Solid valuation and technicals: TTM P/E 24.11, Price/Sales (TTM) 1.85, trading above the 50-day SMA of 6.18 (near $8.03) with Market Cap A$10.60B and negative beta (-0.18).