ASX Hits Record High as Energy Stocks Surge

Highlights

• ASX reaches record high, driven by energy stocks.
• AMP surges with strong financial returns and business growth.
• Key sectors like banking, energy, and mining show notable movement.

Australian shares have set a new record high, bolstered by strong performances across all sectors, particularly energy. The S&P/ASX 200 Index has gained 1 percent, trading 78 points higher at 8363.5, surpassing the previous intraday high of 8330. This rally is largely supported by energy companies such as Woodside (ASX:WDS) and Santos (ASX:STO), following overnight gains in global oil prices. 

The Australian market has also drawn inspiration from Wall Street’s positive session, where financials and utilities sectors led the charge. In the US, Morgan Stanley saw significant gains after releasing quarterly results that exceeded market expectations. The broader S&P 500 index followed suit, with nine of its eleven sectors in the green. Yardeni Research noted that, while larger tech stocks led much of the recent market momentum, smaller companies reflected in the Russell 2000 Index have started gaining traction, with that index rising 1.6 percent. 

Looking ahead, investors are keeping a close eye on the Australian Bureau of Statistics, which is expected to release the latest employment data later in the day. Current projections suggest that the unemployment rate for September will remain steady at 4.2 percent, a figure that will be pivotal in shaping the market’s next moves. 

Stocks in Focus 

AMP (ASX:AMP) has made headlines by returning a substantial $1.1 billion to its shareholders through dividends and share buybacks. The financial services company has also seen increased inflows to its wealth management platform, contributing to a sharp rise in its stock price, up by 12.9 percent, reaching $1.53. The company’s ongoing strategy of business simplification and growth is proving effective in boosting confidence in its future performance. 

In contrast, Star Entertainment (ASX:SGR) has paused trading after announcing that it will keep its Sydney casino open, despite operational challenges. The company will, however, be subject to a hefty fine and will continue to operate under the watch of a government-appointed manager. 

Meanwhile, BHP (ASX:BHP) is holding steady, with shares remaining flat at around $43.55. Despite ongoing infrastructure work in its iron ore division, the mining giant has made a solid start to the financial year. The company’s leadership also drew attention following a meeting between CEO Mike Henry and South African government officials, fueling speculation about potential strategic moves involving Anglo American. 

In the banking sector, Commonwealth Bank (ASX:CBA) saw its shares rise by 1.2 percent, trading near $141.41. This comes after the Australian Communications and Media Authority imposed a $7.5 million fine on the bank for spamming its customers. Despite the penalty, the broader gains across the banking sector have helped lift the company’s stock. 

The ASX continues to reflect strong momentum, with energy, financials, and utilities at the forefront of this surge. As global markets remain optimistic, Australian stocks are expected to continue reflecting broader international trends.