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The ASX 200 finished modestly lower after recovering from an early 1.4% decline, with strength across Energy and Financials helping the market claw back losses following renewed geopolitical tensions in the Middle East. Fresh US strikes on Iran and the revocation of sanctions waivers allowing Iranian oil exports pushed Brent crude to a two-week high, lifting energy stocks but weighing on the broader Resources sector as higher oil prices reignited inflation concerns and drove bond yields higher.
Five of the eleven sectors finished lower, with Materials again bearing the brunt of the selling, under pressure as the combination of higher oil prices, firmer bond yields and a stronger US dollar sparked another round of selling across precious metals and diversified miners. Technology underperformed as investors took profits following recent strength, while Energy was the standout performer, buoyed by the rally in crude prices. Financials also recovered strongly through the afternoon, with the major banks reversing early losses to finish higher.
- ASX 200: -18.82 pts / -0.21% / 8,785.10
- AUD/USD: US$0.6940 / +0.17%
- Best sectors: Energy +3.26%, Utilities +1.22%, Consumer Staples +1.04%
- Worst sectors: Communications -2.10%, Materials -2.00%, IT -1.88%
- Santos (ASX: STO) +5.78% to $7.50 was among the day’s best performers as the rebound in oil prices lifted the entire energy complex. Woodside Energy (ASX: WDS) +3.22% to $28.87, Karoon Energy (ASX: KAR) +6.64% to $1.45 and Viva Energy (ASX: VEA) +3.26% to $2.22 also traded strongly as investors rotated back into energy producers.
- BHP (ASX: BHP) -2.31% to $57.51 weighed on the Materials sector after unions announced eight hours of industrial action at the company’s Port Hedland export terminal next week following six months of unsuccessful enterprise bargaining negotiations. The action threatens operations at the world’s largest iron ore export port, although BHP noted it remains focused on reaching a fair agreement.
- WiseTech Global (ASX: WTC) -7.28% to $34.65 gave back part of Tuesday’s strong rally as investors locked in profits, dragging the Technology sector lower alongside weakness in Xero (ASX: XRO) -1.18% to $73.97 and NextDC (ASX: NXT) -1.01% to $13.66.
- Telstra (ASX: TLS) -2.96% to $4.92 fell to its lowest level since February after a broken timer at two data centres triggered a nationwide mobile outage, disrupting rail services, payment systems and some emergency calls. The company said around 90% of the network had been restored by mid-morning while investigations into the cause continue.
- ResMed (ASX: RMD) -0.80% to $31.19 slipped after agreeing to sell its MatrixCare software business to private equity firm Frazier Healthcare Partners for US$490 million ($708 million), continuing management’s strategy of focusing on its core sleep and respiratory businesses.
- Adairs (ASX: ADH) -1.3% weakened after warning it expects to post a FY26 statutory loss of around $43 million following a $62-68 million impairment against its Focus on Furniture business, despite underlying sales growth across its core brands.
- Gold miners remained under pressure with Regis Resources (ASX: RRL) -5.10% to $6.33, Evolution Mining (ASX: EVN) -4.19% to $11.44 and Northern Star (ASX: NST) -1.69% to $20.31 all finishing lower as higher bond yields reduced demand for the precious metal.
- Oil (WTI): ~US$72.60/bbl / +3.1%
- Gold: ~US$4125/oz / +0.5%
- Iron Ore: ~US$99.40/mt / +1.3%
- Asian Markets: China flat, Hong Kong +3.4%, Nikkei −1.8%
- Global Futures: FTSE −0.3%, S&P 500 E-Mini –0.2%, Dow E-Mini -0.3%
