ASX Edges Higher as Tech, Energy and Banks Lead Gains Amid Market Calm

Key Highlights:

• ASX 200 rises 0.33% to 8,376.2 with broad sector support
• Tech and energy stocks bounce back, gold and materials retreat
• Small caps outperform; volatility index signals investor confidence
   

Australian shares advanced modestly on Thursday, with the S&P/ASX 200 climbing 27.5 points (+0.33%) to close at 8,376.2, as investors returned to growth sectors after a subdued midweek session. Gains were broad-based, with seven of eleven sectors finishing in the green, while defensive names and gold stocks edged lower.

Technology stocks led the rebound, with the All Tech Index (XTX) up 0.74%, supported by strength in Novonix (+5.68%) and Infomedia (+3.75%). The upbeat sentiment spilled into the broader All Ordinaries, which closed up 0.32% at 8,599.1, while the Small Ordinaries Index outperformed, rising 0.48%.

Energy stocks posted a 0.84% gain, reversing some of Wednesday’s losses, despite a dip in Brent crude to US$64.07/bbl. Boss Energy surged 9.3%, Paladin added 7.3%, and Deep Yellow climbed 6.96%, reflecting renewed investor interest in uranium amid energy transition narratives.

Banks also staged a comeback, with the ASX 200 Banks Index (XBK) up 0.98%, led by optimism around resilient domestic lending data and dividend support from names like Macquarie and Bank of Queensland. The financials sector gained 0.80%, extending its positive run for the week.

Meanwhile, materials (-0.46%) and gold stocks (-0.32%) lagged as gold eased 0.56% to US$3,295/oz, pulling back after a recent safe-haven rally. Energy Resources of Australia led the laggards, plunging 20%, while Duratec and Meeka Metals slipped more than 6%.

On the macro front, a stable overnight session on Wall Street saw the Dow flat, the NASDAQ inching up 0.28%, and the S&P 500 down just 0.04%. The ASX Volatility Index remained firmly in the “low” zone at 11.5, suggesting strong investor confidence in the short term.

In currency markets, the Australian dollar traded at US$0.6412, marginally higher, while key commodities like silver (-1.38%) and WTI crude (-1.23%) saw moderate declines.

With corporate earnings cooling and macro headwinds in view, today’s session reflected a cautiously optimistic tone. Investors appear to be rotating back into growth sectors, while keeping a close watch on global inflation trends and central bank signals.