Australian Shares Surge on Energy Gains Amid Russia-Ukraine Tensions

Australian shares increased shortly after opening on Friday. The rise reflected trends seen in Wall Street, driven by energy stocks. Concerns about the Russia-Ukraine war led to a sharp increase in oil prices.

The S&P/ASX 200 index rose by 0.7 per cent, or 60 points, reaching 8383. It is now less than 40 points shy of its all-time closing record set on Tuesday. This week, the index has climbed by 0.5 per cent.

Among the sectors, only technology experienced a decline. Logistics software firm WiseTech fell by 16 per cent after it lowered its revenue and earnings forecasts for FY25.

The a2 Milk Company was the biggest winner, increasing nearly 13 per cent. It raised revenue guidance and announced plans to pay dividends due to strong sales and higher global dairy prices.

BHP and Rio Tinto both gained 0.6 per cent, while Fortescue added 0.4 per cent. The big four banks also saw gains, with Commonwealth and National Australia Bank rising by 0.8 per cent.

Oil prices climbed by 2 per cent overnight, driven by missile exchanges between Russia and Ukraine. This boosted shares like Santos and Woodside, which both rose over 1 per cent. Whitehaven Coal surged nearly 4 per cent.

In the cryptocurrency market, bitcoin increased by 0.5 per cent, approaching $US99,000. This came after SEC Chairman Gary Gensler announced plans to resign on January 20.

Stocks on the Move

Jewellery chain Lovisa dropped by 3 per cent after its sales for the first 20 weeks of FY25 fell below analyst expectations.

Software company Megaport declined by 12 per cent, despite reaffirming its FY25 earnings guidance of $57 million to $65 million.

Orica eased by 1.3 per cent as it traded ex-dividend.