The Australian sharemarket tumbled on Thursday, driven by heightened Middle East tensions following an Iranian missile attack and a ceasefire between Israel and Lebanon. The benchmark ASX 200 fell 99.60 points, or 1.13 per cent, to 8686.10, while the All Ordinaries dropped 100.30 points, or 1.11 per cent, to 8916.90. This decline came just 24 hours after the index hit a record high.
The Australian dollar slid 0.12 per cent against the US dollar, buying 71.25 US cents. On a grim trading day, six of the 11 sectors finished in the red, with significant swings in mining, telecommunications, and technology shares.
Miners Lead the Decline
BHP and Rio Tinto, Australia's two largest miners, both fell more than 3 per cent, closing at $62.80 and $188.08 respectively. Fortescue Metals dropped 4.11 per cent to $21.02. Gold miners also suffered, with Northern Star Resources declining 6.08 per cent to $20.39 and Evolution Mining losing 3.04 per cent to $12.10.
Pitcher Partners chief investment officer Cameron Curko attributed the fall in iron ore prices to the escalating Simandou production in Guinea, which raised fears of a looser market. He noted that the pullback followed a period of extreme exuberance for the sector.
Telecommunications and Technology Stocks Hit
Telstra fell 2.93 per cent to $4.97. Among technology stocks, Xero slumped 4.19 per cent to $80.40, WiseTech Global dropped 2.93 per cent to $40.14, and Life360 tumbled 4.03 per cent to $21.66.
Middle East Developments Drive Volatility
Thursday's trading was dominated by news from the Middle East. An Iranian missile attack damaged Kuwait’s airport, and US military strikes near the Strait of Hormuz raised supply disruption risks. Initially, oil prices surged, but they eased as Israel and Lebanon agreed to a ceasefire. Brent Crude Oil futures fell 1.1 per cent to $US96.78 ($A136) per barrel.
Global X ETFs investment strategist Justin Lin noted that markets are now skeptical of headlines due to numerous false starts on a peace deal. He observed a retreat to safety, with consumer staples and utilities leading while materials and information technology lagged.
Company News
Treasury Wine Estates soared 13.11 per cent to $4.66 after reaffirming projected earnings of $480–$490 million for the financial year and axing up to a dozen wine brands. Medical imaging firm Pro Medicus slipped 0.25 per cent to $159.23 after inking a new five-year deal worth $16 million with Ohio State University Wexner Medical Center.
