Key Takeaways
- Australian shares fell as rising tensions in the Middle East pushed oil prices higher.
- Technology and utilities stocks were hit hard, while energy producers saw gains.
- The S&P/ASX 200 index dropped 0.1% to close at 8,801 points.
Australian shares experienced a decline on Monday as rising tensions in the Middle East dampened market sentiment. The S&P/ASX 200 index fell by 0.1%, closing at 8,801 points by 0020 GMT, after losing 0.4% last week.
The escalation of friction between the United States and Iran, including an exchange of heavy missile and drone assaults, cast doubt on the future of a recent U.S.-Iranian agreement signed in June. This development led to a significant rise in oil prices by more than 3%, driving local energy stocks up as much as 1.3% to their highest levels since June 18.
Major energy producers such as Woodside Energy and Santos saw gains, with each company's shares increasing by over 0.6%. However, technology stocks faced a downturn, falling as much as 1.7% to their lowest point since July 3. Notable declines were recorded for Xero and WiseTech Global, which fell 3.1% and 1.4%, respectively.
The utilities sub-index experienced its biggest fall in nearly two weeks, dropping by as much as 2.5%. Sector majors Origin Energy and AGL Energy saw their shares decline by 1.6% and 3.8%, respectively. Gold miners also faced losses of 1.5%, tracking weaker bullion prices due to concerns about higher interest rates to combat inflationary pressures.
Evolution Mining and Northern Star Resources fell by 1.8% and 2.6%, respectively, while major miners BHP and Rio Tinto advanced by 0.5% and 1.1%, respectively, ahead of their quarterly production results later this week. Financials rose as much as 0.4% to a more than two-month high, with Commonwealth Bank of Australia and ANZ Group gaining 0.3%. Healthcare stocks slid 0.1%, while the consumer staples sub-index fell by 1.4%.
Among individual stocks, Genesis Minerals saw a significant increase of over 3% after rival suitor Regis Resources abandoned its buyout bid for Vault Minerals. New Zealand’s benchmark S&P/NZX 50 index also declined by 0.3%, closing at 13,742.52 points.
