ASX 200 Holds Steady as Tech Stocks Rally, Energy Drags Market Lower

Key Highlights

• The S&P/ASX 200 closed at 8,516.3, down 0.05%, as mixed sector performance kept the index in check.
• Technology stocks led gains, with the All Technology Index rising 0.79% to 4,044.4.
• Energy (-1.28%) and Utilities (-0.64%) were the worst-performing sectors.
• The Australian dollar edged higher to 0.6290 USD, up 0.10%.
• Domino's Pizza Enterprises Ltd (ASX: DMP) soared 21.95%, topping the gainers list.
• Energy Resources of Australia (ASX: ERA) plunged 16.67%, leading the decliners.

The Australian stock market saw a mixed trading session on February 7, 2025, with the S&P/ASX 200 slipping 4.4 points (-0.05%) to 8,516.3. While gains in technology stocks helped limit losses, weakness in the energy and utilities sectors weighed on the broader market.

The All Technology Index (XTX) was the standout performer, climbing 0.79% to 4,044.4. Investors appeared to rotate into growth sectors following strong earnings reports from leading tech firms.

Sector Performance: Energy and Utilities Drag Market Lower

Six out of eleven ASX sectors finished in positive territory, with Information Technology (+0.89%), Staples (+0.50%), and Telecommunications (+0.34%) leading the way. However, Energy (-1.28%) and Utilities (-0.64%) recorded notable declines, driven by falling oil prices and investor concerns about future energy demand.

Biggest Movers: Top Gainers and Losers

Top Gainers

Domino's Pizza Enterprises (ASX: DMP) jumped 21.95% to $36.12, following a strong earnings update and optimistic growth outlook.

Nick Scali Ltd (ASX: NCK) surged 15.41% to $18.80, benefiting from robust consumer spending.

Collins Foods Ltd (ASX: CKF) gained 13.90% to $8.44 amid strong fast-food sales growth.

Biggest Fallers

Energy Resources of Australia (ASX: ERA) tumbled 16.67% to $0.0025, leading the losses after disappointing production updates.

McMillan Shakespeare Ltd (ASX: MMS) fell 9.40% to $13.97, weighed down by weaker-than-expected financial results.

Chalice Mining Ltd (ASX: CHN) declined 6.50% to $1.15 as commodity prices softened.

Global Markets and Commodities

In global trading, the Dow Jones lost 0.28%, while the NASDAQ gained 0.51%, reflecting a mixed sentiment in US markets. The Hang Seng Index rose 1.43%, buoyed by strong Chinese economic data.

Commodities saw moderate gains, with Brent Crude up 0.53% to $74.68 per barrel, while Gold edged 0.43% higher to $2,889.20 per ounce.

Outlook: Stability with Sector Rotation in Focus

Despite sector weaknesses, the overall market remains resilient, with investors closely watching economic data and global trends. The tech sector's strength suggests continued growth potential, while energy and utilities may remain under pressure if oil prices soften further.

Market participants will be eyeing upcoming corporate earnings and global economic indicators for further direction in the coming sessions.