Australian Shares Surge Amid Rising Oil Prices and Corporate Updates

Highlights   

• Energy sector drives gains amid rising oil prices linked to geopolitical tensions.  
• Technology sector falls, with WiseTech leading declines.  
• Strong performances by a2 Milk, BHP, and Resolute Mining.   

The Australian stock market continued its upward momentum early Friday afternoon, driven by strength in the energy sector. Escalating tensions in the Russia-Ukraine conflict pushed oil prices higher, boosting market sentiment. The S&P/ASX 200 surged by 1.1% or 88 points to reach 8401, inching closer to breaking Tuesday's record of 8374. The index has climbed by 1.5% for the week.   

Energy Sector Leads the Way   

Rising oil prices were a key driver of gains, with Woodside (ASX:WDS) climbing 2.7% and Santos (ASX:STO) advancing 2.2%. Whitehaven Coal (ASX:WHC) also performed strongly, gaining 4.4% amid higher energy demand. The boost in commodity prices came as geopolitical tensions fueled concerns over potential supply disruptions.   

Mixed Performance Across Sectors   

While most sectors recorded gains, the technology sector lagged. Logistics software maker WiseTech (ASX:WTC) tumbled by 8% after revising its revenue and earnings outlook for FY25. Megaport (ASX:MP1) also struggled, falling nearly 11%, as concerns about its hiring plans raised questions about its future margins.   

In contrast, index heavyweights such as BHP (ASX:BHP), Rio Tinto (ASX:RIO), and Fortescue (ASX:FMG) added more than 1%, reflecting strength in mining. Gold prices surged due to geopolitical uncertainty, pushing Newmont (ASX:NEM) up 1.5%.   

Corporate Updates Fuel Stock Movements   

The a2 Milk Company (ASX:A2M) soared nearly 17% after announcing stronger revenue guidance and its decision to commence dividend payments. This optimism stemmed from better-than-expected sales and higher global dairy prices. Jewellery retailer Lovisa (ASX:LOV) climbed 2.7% following a positive trading update.   

Resolute Mining (ASX:RSG) rose 1.7% after confirming that its CEO and two employees were released from detention in Mali. The miner also agreed to pay $247 million in back taxes to the Malian government.   

Market Trends and Currency Moves   

Bitcoin experienced a slight pullback after reaching $98,000 earlier in the week, following news of potential leadership changes at the SEC. Meanwhile, the broader market benefited from positive sentiment in banking stocks, with Commonwealth Bank (ASX:CBA) hitting a new peak of $158.20.   

Despite the gains, online retailer Kogan (ASX:KGN) eased by 1.2% even after issuing a better-than-expected earnings update.   

The Australian stock market’s performance reflects the interplay of global and local factors, with energy and resource sectors continuing to act as key pillars of support.