ASX Battles Market Meltdown: Four Stocks Defy the Downturn
The Australian share market experienced a significant downturn on Monday, with the S&P/ASX 200 Index (ASX: XJO) enduring one of its most challenging sessions in recent memory. As of the time of writing, the benchmark index had plunged by a substantial 4.1%, settling at 8,487.2 points. This widespread sell-off saw numerous companies feeling the pinch. However, amidst the broader market weakness, a select few ASX-listed entities managed to buck the trend, recording gains. Let’s delve into the reasons behind the resilience and growth of these four particular shares.
Amplitude Energy Ltd (ASX: AEL) Soars on Promising Drilling Results
Amplitude Energy Ltd (ASX: AEL) saw its share price climb by 1.5%, reaching $2.66. The natural gas company announced an encouraging update regarding its drilling operations at the Isabella prospect, located in the offshore Otway Basin in Victoria. Preliminary data gathered from the site suggests that the Isabella reservoir exhibits high gas deliverability and notably low carbon dioxide (CO2) levels.
The company elaborated on these findings, stating, “The gas water contact is currently interpreted as being below the Waarre C reservoir intersection, with technical results to date indicating potential for a larger gas accumulation than that implied by the Waarre C reservoir intersection alone, which supports the Joint Venture progressing to a flow test to confirm minimum gas volume and reservoir pressure.” This positive news has clearly resonated with investors, who have responded by pushing the share price higher. The prospect of a larger-than-anticipated gas accumulation and the planned flow test have instilled confidence in Amplitude Energy’s future prospects.
Cogstate Ltd (ASX: CGS) Gains Traction on Broker’s “Best Buy” Call
Cogstate Ltd (ASX: CGS), a healthcare technology firm specialising in digital cognitive assessments, witnessed its share price rise by nearly 2.5% to $2.16. This upward movement appears to be largely influenced by a favourable broker note issued by Bell Potter. The investment firm has identified Cogstate as one of its top “best buy” recommendations for March, highlighting its strong value proposition.
Bell Potter’s analysis pointed to the company’s attractive valuation, noting, “The stock is trading at ~11x forward EV/EBITDA which looks very undemanding relative to local small cap healthcare peers (>30x avg) and large global peers (~13x avg with lower growth).” Furthermore, the broker emphasised Cogstate’s robust financial performance and future potential. They highlighted an “impressive NAPT margin of 19% in FY25 and is well poised for leverage off the back of its second-best ever half of new sales in 1H26 which grew revenue backlog up to US$92m.” This combination of a compelling valuation and strong growth indicators has clearly caught the attention of the market.
Dexus Convenience Retail REIT (ASX: DXC) Boosts Shareholder Value with Buy-Back
The Dexus Convenience Retail REIT (ASX: DXC) experienced a modest increase of 1% in its share price, reaching $2.79. The real estate investment trust announced its intention to initiate an on-market buy-back of its securities, with an initial target of acquiring 2.5% of the total securities currently on issue.
Pat De Maria, Fund Manager for DXC, expressed optimism about this strategic move, stating, “Around current trading levels, we believe that an on-market securities buy-back represents a compelling return on capital and further enhances value for existing securityholders.” This decision signals management’s belief that the REIT’s units are undervalued at current trading levels, and that repurchasing them will provide a beneficial return on capital, ultimately benefiting the remaining shareholders. This proactive approach to capital management has been well-received by the market.
Santos Ltd (ASX: STO) Rides the Wave of Rising Oil Prices
Santos Ltd (ASX: STO) stood out with a significant 3% increase in its share price, reaching $7.68. Investors have been actively buying shares in Santos and other ASX energy companies on Monday, driven by a sharp surge in global oil prices. West Texas Intermediate (WTI) crude oil has reportedly surpassed the US$100 per barrel mark, with reports from CNBC indicating a 20% rise to US$109.12.
The primary catalyst for this oil price spike appears to be news of production cuts by major Middle Eastern oil producers, including Kuwait, Iran, and the United Arab Emirates. These cuts have been implemented following the closure of the Strait of Hormuz, a critical chokepoint for oil transportation. The geopolitical tensions and supply concerns have created a more favourable environment for oil producers like Santos, leading to increased investor interest and a subsequent rise in its share price.
