Energy giants, A2 Milk boost ASX to new record; WiseTech plummets

Welcome to your five-minute recap of the trading day.

The numbers

The Australian sharemarket rose sharply on Friday to close the week on a new high. While local tech giant WiseTech Global’s shares copped a hit after it downgraded its financial guidance, buoyant energy stocks were able to keep the index flying.

The S&P/ASX 200 closed Friday up 70.8 points, or 0.9 per cent, to 8393.8 points, with all ASX industry sectors except tech in positive territory.

The Australian dollar experienced marginal losses, and was valued at 64.93 US cents as at 4.20pm AEDT.

Wall Street rose on strong profit results.Credit: AP

The lifters

Energy shares jumped as rising tensions between Russia and Ukraine pushed oil prices higher. Gains were led by Yancoal Australia (5.4 per cent) and Whitehaven Coal (3.6 per cent), with Woodside Energy (2.2 per cent) and Santos (1.8 per cent) also logging positive sessions. Origin Energy (1.9 per cent) and AGL Energy (1.1 per cent) finished in the green.

Commonwealth Bank (1.8 per cent) led the big four banks, who all advanced on Friday. NAB increased its share value by 1.4 per cent, Westpac edged up 0.9 per cent, while ANZ finished flat (less than 0.1 per cent gain). Macquarie Group enjoyed a 1 per cent push, while QBE (0.9 per cent) also finished on the front foot.

Mining giants BHP (0.9 per cent increase), Fortescue (1.1 per cent) and Rio Tinto (0.6 per cent) each closed out in the green. Meanwhile, South32 (2.7 per cent) and James Hardie (2.8 per cent) were also among the day’s best performers. And the health care sector also had a stellar session, buoyed by CSL (1 per cent), Ramsay Health Care (3.4 per cent) and Resmed (0.5 per cent).

Resolute Mining shares closed flat after the company confirmed that chief executive Terry Holohan and two other employees had been released in Mali.

They had been detained in Bamako following the introduction of a new mining code by the military-led government, a bid to increase local ownership in an industry dominated by foreign companies and increase royalty revenue.

The company confirmed earlier this week it had inked an agreement to hand over more than $247 million to ensure the release of the trio.

It also follows the introduction of a new mining code by the military-led government, a bid to increase local ownership in an industry dominated by foreign companies and increase royalty revenue.

The laggards

WiseTech saw shares plummeted 12.4 per cent, after it downgraded its financial guidance following months of media controversy engulfing the firm’s founder and former CEO Richard White.

Losses in the IT sector were further compounded by negative results from Xero (0.3 per cent) and NextDC (3.7 per cent).

Pilbara Minerals was the one laggard in the materials sector on Friday, falling 6.8 per cent.

The lowdown

IG Group market analyst Tony Sycamore described Friday’s trading as part of another rollercoaster week for WiseTech shareholders, who enjoyed gains earlier in the week but saw them evaporate in Friday’s session.

“It’s probably close to being in the too hard basket for the time being,” Sycamore said of WiseTech stock. “The dust will settle, but in the short term it’s a hard proposition.”

Sycamore also noted the success of A2 Milk, which rose by 13.3 per cent on Friday and has been more resilient than expected amid concerns about the strength of its Chinese market.

The big four banks have also performed well, as anticipated growth in the US economy following the election of Donald Trump flows into the Australian market.

Oil prices will remain in focus across the following weeks, as escalating tensions in the Russia-Ukraine war are expected to influence global trade.

On Wall Street, US stocks climbed on Thursday after market superstar Nvidia and another round of companies said they’re making even fatter profits than expected.

The S&P 500 pulled 0.5 per cent higher after flipping between gains and losses several times during the day. Banks, smaller companies and other areas of the stock market that tend to do best when the economy is strong helped lead the way, while bitcoin briefly broke above $US99,000. Crude oil, meanwhile, continued to rise.

The Dow Jones jumped 461 points, or 1.1 per cent, and the Nasdaq composite edged down by less than 0.1 per cent.

Nvidia rose just 0.5 per cent after beating analysts’ estimates for profit and revenue yet again, but it was still the strongest force pulling the S&P 500 upward. It also gave a forecast for revenue in the current quarter that topped most analysts’ expectations due to voracious demand for its chips used in artificial-intelligence technology.

In stock markets abroad, shares of India’s Adani Enterprises plunged 22.6 per cent Thursday after the US charged founder Gautam Adani in a federal indictment with securities fraud and conspiracy to commit securities and wire fraud.

Tweet of the day

Quote of the day

“We are concerned the government is rushing this legislation without adequate consultation or evidence and there are still many unknowns with respect to its implementation. The legislation as drafted seems out of step with available research and expert opinions, including those from within the government, academia, industry, mental health organisations, and Australian parents and young people.”

A Meta spokesperson, in response to the federal government’s social media age limit legislation. While voicing its opposition, Meta said it would “respect” any age limits introduced.

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WiseTech founder Richard White said he was “truly sorry” for the impact the media storm has had on his family and loved ones in his first public comments since his resignation amid accusations of bullying and misconduct.

Addressing shareholders virtually in a pre-recorded message at the company’s AGM on Friday, White said the past two months had taken a significant toll on WiseTech Global, its employees and himself.

AP

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