Kalkine : Energy sector drives ASX 200 higher amid broad gains; gold miners under pressure

Highlights

• ASX 200 lifts in early trade as energy, consumer discretionary, and real estate sectors post strong moves

• Oil majors WDS and STO support the energy sector’s rise, while IEL and NXT stand out on individual stock gains

• Gold mining stocks including WAF, GMD, and RRL dominate the lower end of the ASX 200

The Australian share market moved higher in the morning session, with the ASX 200 showing strength across several key sectors. Among the eleven sectoral indices, nine opened in positive territory. Leading the upward drive was the energy sector, with notable moves from companies such as (ASX:WDS) (Woodside Energy) and (ASX:STO) (Santos). Both stocks advanced during early trade, reflecting improving sentiment in the oil and gas segment.

Strong global cues and a modest rebound in commodity markets added support to local energy names. The broader performance of the sector influenced the index significantly, placing energy at the forefront of the market’s early recovery.

Consumer discretionary and real estate sectors maintain momentum

The consumer discretionary sector followed closely behind, benefitting from improved outlook in retail and lifestyle-based businesses. This included steady movements across a range of stocks in home improvement, leisure, and household spending categories. Optimism around consumer trends contributed to broader strength, supporting gains in the index.

Real estate also saw early session advances. A rise in confidence across commercial property and infrastructure-focused companies contributed to positive momentum. This performance positioned the real estate sector among the top gainers, joining energy and consumer discretionary as key market drivers.

Education provider IEL rebounds sharply

One of the standout performers on the ASX 200 was (ASX:IEL) (IDP Education). The stock rebounded strongly after experiencing a significant decline during the previous week. The movement occurred in the wake of market adjustments and operational updates, and it placed IEL at the top of the leaderboard in the early session.

The education services provider’s recovery came amid broader interest in the sector, despite earlier setbacks. IEL's performance played a critical role in offsetting declines in other areas of the index and highlighted the market's short-term dynamics.

Tech firm NextDC gains on operational update

NXT (NextDC) was another major contributor to the morning’s gains. The data centre operator recorded an increase in contracted utilisation across its facilities, supporting its early trade surge. The company’s announcement reflected expansion in demand for digital infrastructure services and boosted its share performance significantly.

The stock's move aligned with broader interest in technology and digital transformation sectors. As reliance on data services grows, companies like (ASX:NXT) continue to attract attention for their infrastructure roles in enabling enterprise growth.

Gold mining stocks face widespread off

In contrast to gains across several sectors, the gold mining segment recorded sharp declines during early trading. (ASX:WAF) (West African Resources), (ASX:GMD) (Genesis Minerals), and (ASX:RRL) (Regis Resources) were among the worst performing stocks on the ASX 200.

The collective dip in gold miners placed downward pressure on the materials sector, offsetting strength seen elsewhere. Market movements in global gold prices appeared to contribute to the decline, weighing on local producers. The downturn was particularly concentrated in mid-cap and development-focused miners, highlighting a divergence in sectoral trends across the market.

ASX 200 driven by sector-wide resilience

The broader index was lifted by strength in a majority of sectors, with energy, discretionary, and real estate at the forefront. Despite weakness in gold-related stocks, the market’s resilience in early trade demonstrated support across diversified areas. Individual moves from stocks like IEL and NXT added further volume to the session, balancing declines seen in the resources segment.

As trading continued, the ASX 200 remained supported by a mix of sectoral growth and stock-specific developments, reflecting a complex but active start to the day.