ASX 200 Gains as Virgin Australia (ASX:VGN) Rejoins Market While Energy Sector Retreats

June 25, 2025 10:32 PM PDT | By Team Kalkine Media

ASX 200 Gains as Virgin Australia (ASX:VGN) Rejoins Market While Energy Sector Retreats — Image source: Shutterstock

Oil Stocks Retreat After Crude Declines on Geopolitical Truce

While the broader ASX experienced gains, the energy sector lagged due to a sharp downturn in oil prices. The market interpreted recent developments in the Middle East — notably a statement from the United States indicating de-escalation — as a signal that oil supply routes remained intact.

This sentiment weighed on key producers, with Woodside Energy Group (ASX:WDS) and Santos Ltd (ASX:STO) facing notable declines. The drop in oil prices was triggered after missile activity in the region failed to impact infrastructure, and diplomatic language hinted at a pause in hostilities.

Virgin Australia Returns with Market Confidence Post-IPO

The key highlight of the session was the re-listing of Virgin Australia, with shares under the ticker ASX:VGN opening above their initial public offering price. The airline, which exited administration under Bain Capital’s stewardship, has undergone significant restructuring to position itself as a leaner, mid-market carrier.

Qatar Airways maintains a strategic stake, and the company’s relisting was viewed as a significant milestone for the local aviation sector. Market participants also responded positively to the broader implications of a major re-listing event, potentially signalling the end of a quiet phase for IPO activity on the ASX.

Banking and Tech Sectors Outperform as Broader Sentiment Strengthens

Commonwealth Bank (ASX:CBA) posted another record intraday performance, buoying financial stocks. The company’s momentum added stability to the broader index, even as energy names pulled back.

Technology names were also among the top performers, with WiseTech Global (ASX:WTC) and NextDC (ASX:NXT) climbing firmly. Their strength was attributed to ongoing appetite for growth-oriented businesses amid falling bond yields and easing inflation concerns globally.

Miners Advance Amid Steady Commodities and Positive China Data

Major resource companies Rio Tinto (ASX:RIO) and Fortescue Metals Group (ASX:FMG) also rose during the session. The gains aligned with stable iron ore prices and improved demand indicators from China. The materials segment benefited from optimism surrounding stimulus measures in Asia, providing further tailwinds for the Australian share market.

Consumer and Retail Stocks Pop on Earnings and Dividend News

Treasury Wine Estates (ASX:TWE) advanced after reaffirming its earnings outlook and announcing a share buyback initiative. The company also outlined plans for its newly formed premium division, Treasury Collective, focusing on luxury wine segments and expansion into Asian markets.

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