Higher Turm“Oil” in Middle East Drives Energy Sector
Paper Mandate Market & Portfolio Commentary | 18 May 2026
Fund Status:
Bal Start: $1,108,112
Bought SHA
Sold: None
Bal End: $1,087,521
Cash: $138,343
Market Commentary
Global markets were down on Friday. The Russell 2000 falling the most of all (-2.44%), indicating small caps had a bad day. Gold is detracting further while WTI oil is up a whopping +4.20% to $105.42. Energy was the only sector on Friday to rally (+2.32%) while all other sectors were down. Materials the most (-2.74%). The US 10-year yield hit 4.59%. Inflation fears kicking in. This was universal as well: Japan’s 30-year yield hit 4%, UK 10-year hit 5.17%. The concern is the war will force banks to hike rates as a result of higher inflation. The technology sector is feeling the effects, Cerebras fell -10%. Nothing compared to its 68% hike on IPO day but it could be a signal for the SpaceX IPO coming soon. ASX futures are down leading to open.
ASX ended the day lower as expected. Energy was the winner (+2.0%), while Industrials (-4.02%) and Materials (-2.83%) were the laggards. Couple of interesting stock callouts: Tuas dropped -62.95% after the Singaporean Authority suspended the acquisition review. Brazilian Rare Earths jumped 11.24%, leading the pack of other rare earth miners. WDS energy was up +3.0% on the back of higher oil prices.
Portfolio Commentary
OBM approved the development of a third underground mine as part of an aspirational three-year growth plan to reach 300,000oz annual production. This is very positive for the stock. 360 announced a buyback program. Shows management has confidence in the stock. Could also be a way they can prop up the share price from its lows. SHA was initiated by Morgans with a target price of $8.62 (25% implied gain). The stock has reached all time highs, wary of a retracement. C79 is breaking down further. While it is only 3% of the portfolio at cost the price looks like it is gapping down to the previous support line. Should it drop further we’ll cut the position. PC2 dragged the portfolio -6% driven by lower gold prices. SKS also dropped -6%, coming off its highs and following the drawdown in Tech.
Investment Activity
Disclaimer: This is a paper portfolio. Content is for educational purposes only and does not constitute financial advice. Always do your own research.