ASX Rebounds as Energy and Small Caps Lead; Pointsbet, DroneShield Surge

Key Highlights:

• ASX 200 rises 0.61% to 8,517.5; All Ords and Small Ords up over 0.6%
• Energy sector tops gains, up 1.87%, while Telcos lag
• Pointsbet (+10.14%) and DroneShield (+9.82%) lead top gainers
• ERA drops 20% to top laggard list amid sharp declines in Redox and Mercury NZ
   

Australian shares advanced on Wednesday, shaking off global trade tensions as a rally in energy and small-cap stocks propelled the benchmark indices to fresh intraday highs. The S&P/ASX 200 climbed 50.8 points or 0.61% to close at 8,517.5, while the broader All Ordinaries index added 0.62% and the Small Ordinaries surged 1.16% — its strongest one-day performance in weeks.

The market’s upward momentum was fueled by a rebound in crude oil prices, with Brent rising 1.52% to US$65.61 per barrel and WTI up 1.31%. This helped the Energy sector lead the pack, gaining 1.87%, followed by strong performances from Consumer Discretionary (+1.03%) and Materials (+0.85%). On the flip side, Telecommunications was the only sector to retreat, down 0.36%.

In the top performers list, Pointsbet Holdings Ltd (ASX: PBH) rocketed 10.14% to $1.195, buoyed by investor optimism surrounding a potential deal or operational turnaround. DroneShield Ltd (ASX: DRO) soared 9.82% to $1.5375 amid rising demand for defense tech solutions. Other major movers included Dateline Resources (ASX: DTR), up 8.70%, and SILEX Systems (ASX: SLX), which gained 8.46%. ZIP Co Ltd (ASX: ZIP) rallied 7.71% to $2.095, continuing its recovery trend in the BNPL space.

Lovisa Holdings (ASX: LOV) impressed with a 7.4% jump to $31.50 after upbeat retail sales guidance, while Nexgen Energy (ASX: NXG) climbed 6.45% to $9.90 amid a broader uptick in uranium stocks. Rounding out the winners were Clinuvel Pharmaceuticals (ASX: CUV) up 6.11%, and Catapult Group (ASX: CAT), which advanced 5.68%.

However, it wasn’t all smooth sailing. Energy Resources of Australia (ASX: ERA) plummeted 20% to $0.002, topping the laggard board after renewed investor concern over legacy uranium liabilities. Redox Ltd (ASX: RDX) and Mercury NZ (ASX: MCY) also tumbled, shedding 6.79% and 6.38%, respectively. Others under pressure included Canyon Resources (ASX: CAY), Tourism Holdings (ASX: THL), and Predictive Discovery (ASX: PDI), which fell between 3% to 4%.

The ASX VIX Index continued to signal calm in the market, falling to a low 10.4, suggesting subdued volatility expectations over the next 30 days.

On the global front, Wall Street remained upbeat overnight, with the S&P 500 closing up 0.58% and the Nasdaq gaining 0.81%, while Hong Kong’s Hang Seng rallied 1.53%. However, concerns linger over U.S.-China trade developments, with eyes on potential tariff reprieves and economic data due later in the week.

With earnings season winding down and international trade tensions still unresolved, the ASX’s near-term direction may hinge on commodity strength and domestic economic indicators.