Tech and energy buoy ASX; TechnologyOne jumps 10pc

A strong rally in technology and energy stocks pushed the Australian sharemarket to a record closing high on Tuesday.

The benchmark S&P/ASX 200 Index added 0.9 per cent, or 73.8 points, to 8374 at the closing bell after the index briefly climbed above 8400 for the first time during the session. All 11 sectors finished in the green and the All Ordinaries rose 0.9 per cent.

The tech sector was the best performing, climbing 3.1 per cent as investors piled into the stocks ahead of Nvidia earnings due on Thursday morning AEDT. Bitcoin was also near its all-time peak before easing back to trade at about $US91,045 ($139,892) in Asian trading.

Technology One led the advance, surging 10.1 per cent to $29.45 after the enterprise software company reported a 15 per cent increase in full-year net profit to $118 million and a 17 per cent jump in revenue. It declared a full-year dividend of 22.45¢ apiece.

Targeted buying

TMS Capital portfolio manager Ben Clark said Tuesday’s gains were driven by a rally in growth stocks. “There’s targeted buying in growth stocks, particularly in technology,” Mr Clark said. He pointed to strong gains in Xero, which finished up 3.7 per cent to $176.88, as an example.

The energy sector was also in the green, tracking a surge in the crude oil price amid simmering geopolitical tensions and a weaker US dollar. Sector heavyweight Woodside Energy climbed 1.9 per cent to$24.56 and Ampol increased 2.7 per cent to $29.24.

Brent crude settled above $US73 a barrel overnight after the US gave Ukraine the go-ahead to use long-range missiles inside Russia, amping up tensions between the warring nations.

Most of the major banks recorded gains, led by index heavyweight Commonwealth Bank, which added 1.7 per cent to $155.61. Westpac rose 0.5 per cent to $33.39 and National Australia Bank firmed 1 per cent to $39.54. ANZ was an exception, slipping 0.4 per cent to $32.34.

Stocks in focus

Newmont rallied 2 per cent to $65.27 after it inked a deal to sell its Musselwhite mine in Canada for up to US$850 million as part of its divestment plan to sell off multiple mines and boost shareholder returns.

Rip Curl and Kathmandu owner KMD Brands dropped 3.9 per cent to 37.5¢ after it flagged that it remains cautious on consumer sentiment after posting a decline in quarterly sales.

Elders shares slumped 10.8 per cent to $7.71 after it came out of trading halt on news that it would acquire Delta Agribusiness for $475 million. It was the worst-performing stock on the ASX 200.

And Santos said it would increase returns to shareholders starting in 2026 after its major projects in the Timor Sea and Alaska start production. The new target, of paying out 60 per cent of free cash flow, compares to the existing policy of returning at least 40 per cent. The shares edged up 0.3 per cent to $6.84.