Key Takeaways
- Australian shares experienced their worst day in over two weeks.
- Mining and gold stocks suffered significant losses due to softer prices.
- Escalating tensions in the Middle East continued to dampen investor sentiment.
Australian shares faced a challenging session on Friday, with the S&P/ASX 200 index falling by 0.5% to close at 8,800.00 points, marking its worst performance in over two weeks. The benchmark index has lost just 0.1% this week but remains under pressure amid ongoing geopolitical tensions.
The market was particularly affected by the downturn in mining and gold stocks. Mining shares declined by 2.9%, their steepest drop since nearly a month ago, with BHP and Rio Tinto experiencing losses of 2.7% and 2.4%, respectively. Gold stocks also saw a significant decline, dropping as much as 4.3%, the lowest level since June 11 due to weaker bullion prices.
Financials managed to hold steady, sliding by only 0.4% but are set for their third consecutive weekly gain. The four major banks—Commonwealth Bank of Australia, National Australia Bank, Westpac Banking Corporation, and ANZ Banking Group—all experienced minor losses ranging from 0.2% to 1%. However, Coles’ shares saw a significant boost, gaining up to 5%, their best day since March, which helped the consumer staples sub-index rise by 2.4%.
Energy stocks provided some relief, with gains of 1.8%, contributing to a weekly increase of 1.9%. Santos and Woodside Energy led this sector, with jumps of 1.1% and 3.3%, respectively. Despite these gains, the overall market sentiment remained cautious due to escalating tensions in the Middle East, which continued to weigh on investor confidence.
The broader New Zealand market also saw mixed results, with its benchmark S&P/NZX 50 index remaining flat at 13,614.21 points for the day but losing nearly 0.8% this week and poised for its worst performance since May 15.
