ASX 200 midday update: Energy shares drop, Resolute jumps, Xero higher

Here’s what’s happening on the ASX 200 on Thursday…

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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) has fought back from a soft start and is pushing higher. The benchmark index is currently up 0.15% to 7,514.8 points.

Here’s what is happening on the ASX 200 today:

Energy shares drag on the ASX 200

Santos Ltd (ASX: STO), Woodside Petroleum Limited (ASX: WPL), and other ASX 200 energy shares are trading lower today and acting as a drag on the ASX 200. This follows a pullback in oil prices overnight after a build-up in US stockpiles. According to Bloomberg, the WTI crude oil price is down 3.7% to US$67.98 a barrel and the Brent crude oil price has fallen 3% to US$70.20 a barrel.

Resolute Mining offloads troubled asset

The Resolute Mining Limited (ASX: RSG) share price is storming higher today. This follows news that the gold miner has finally found an acceptable buyer for its interest in the Bibiani mine in Ghana. According to the release, Resolute has agreed to sell the mine to Asante Gold Corporation for $90 million in cash. Positively, this agreement has received Ministerial Consent. Earlier this year the Minister had blocked the sale of the asset to China’s Chifeng Jilong for ~$105 million.

Xero shares higher following bullish broker note

The Xero Limited (ASX: XRO) share price is pushing higher today. This follows a positive reaction by Goldman Sachs to the launch of the cloud accounting platform provider’s App Store in the ANZ and UK markets. According to the note, the broker has retained its buy rating and $165.00 price target on the company’s shares.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Resolute Mining share price with a 5% gain. This follows the announcement of an agreement to sell its interest in the Bibiani Mine. The worst performer on the ASX 200 has been the Santos share price with a 2% decline following the weakness in oil prices.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Xero. The Motley Fool Australia owns shares of and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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