AU Morning Wrap | Energy Stocks Lift ASX 200; TechnologyOne Soars 7%

On Wall Street, the stock market showed mixed results with the $Dow Jones Industrial Average (.DJI.US)$ decreasing by 0.2%, while the $S&P 500 Index (.SPX.US)$ and $Nasdaq Composite Index (.IXIC.US)$ experienced gains of 0.4% and 0.6%, respectively. Notably, Tesla's shares surged by 4.3% following a Bloomberg report indicating that Trump’s transition team had informed advisers of their intention to prioritize the creation of a federal framework for autonomous vehicles.

Australian shares edged higher at the open on Tuesday, driven by a rally in energy stocks following a surge in crude oil prices. The $S&P/ASX 200 (.XJO.AU)$ increased by 0.57%, reaching 8347.7 points. This gain was supported by the energy sector, which rose 1.6%, with $Woodside Energy Group Ltd (WDS.AU)$ and $Santos Ltd (STO.AU)$ both posting significant advances of 1.6% and 1.8%, respectively. These developments occurred amid escalating geopolitical tensions and a softer US dollar, which enhanced the appeal of commodities priced in the currency. Brent crude settled above $73 per barrel, further intensifying the geopolitical landscape, while a broader risk appetite contributed to gains across different market sectors.

At the start of the week, $Bitcoin (BTC.CC)$ experienced a modest increase of 0.81%, reaching a value of $90,626 within the last 24 hours. $Ethereum (ETH.CC)$ saw a more substantial rise, with its price climbing 2.91% to $3,181 over the same period.

$Technology One Ltd (TNE.AU)$ experienced a 10% surge in shares after reporting a 15% rise in full-year net profit to $118 million and a 17% increase in revenue to $515.4 million, alongside declaring a full-year dividend of 22.45¢ per share.

$Santos Ltd (STO.AU)$ announced plans to increase shareholder returns from 2026, aiming to distribute 60% of free cash flow following the commencement of new projects in the Timor Sea and Alaska, a significant rise from its current policy of returning at least 40%.

$Newmont Corp (NEM.AU)$'s shares rose by 1.9% after signing an agreement to sell its Musselwhite mine in Canada for up to US$850 million, part of its strategy to divest non-core assets and enhance shareholder returns, with the transaction expected to close in the first quarter of 2025.

$KMD Brands Ltd (KMD.AU)$, owner of Rip Curl and Kathmandu, expressed caution regarding consumer sentiment following a quarterly sales decline; Rip Curl sales fell 6.7%, Kathmandu dipped 2.6%, and Oboz decreased 8.6%, leading to a total group sales drop of 5.8%.

$CommBank (CBA.AU)$ is evaluating the potential sale of its stake in Klarna, with analysts suggesting a Klarna IPO could value CBA's stake at approximately $1.8 billion, given a potential $20 billion valuation for Klarna.

$SRG Global Ltd (SRG.AU)$ secured multiple contracts with existing clients across $ANZ Group Holdings Ltd (ANZ.AU)$ valued at A$700 million, close to its market capitalization of $710 million.