2209 GMT - Australian transport stocks are likely to trade on a near-term discount because of concerns around diesel availability, Ord Minnett says. It notes some 2.7 billion liters of diesel are consumed in the country each month. "An arbitrary 1% increase in the market risk premium due to fuel supply issues would (all else equal) reduce discounted cash flow valuations by 11.2% for Qube, 11.4% for Freightways, 15.2% for Mainfreight and 15.2% for Lindsay Australia," analyst Ian Munro says. Australia's supply of diesel is heavily concentrated in Asia. South Korea, Singapore, Malaysia, Taiwan, and Brunei account for nearly 80% of imported diesel. "We note that these countries are heavy refining countries, with a heavy exposure to the Middle East for their crude supplies," Ord Minnett says. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

March 19, 2026 18:09 ET (22:09 GMT)

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