Australian shares declined on Thursday, with the market reversing earlier stability as investor sentiment deteriorated following an address from United States President Donald Trump on the conflict with Iran.
The S&P/ASX 200 Index fell 92.3 points, or 1.1%, to close at 8,579.5, with nine of the eleven sectors finishing in negative territory as geopolitical concerns intensified.
Technology stocks led the downturn, with WiseTech Global dropping 4.3%, Xero falling 3.8%, TechnologyOne declining 3.6%, and NextDC also shedding 3.8%.
The materials sector also came under pressure, as major miners retreated. BHP fell 2.5%, Rio Tinto declined 3.3%, and Fortescue Metals dropped 4%.
Gold producers, which had initially gained amid heightened geopolitical uncertainty, reversed course later in the session. Northern Star Resources ended 0.9% lower, Evolution Mining lost 4.6%, and Greatland Gold slipped 1.4%.
The Energy sector showed relative resilience despite early losses of more than 3.3%, closing just 0.4% lower as rising oil prices provided some support.
Woodside Energy eased 0.5%, and Ampol declined 1%, while Santos gained 1.4% and Beach Energy added 1.2%.
Among individual stocks, KMD Brands plunged 38.3% after trading resumed following the completion of the institutional component of its emergency capital raising.
ASX Ltd dipped 1.1% following a warning from the Australian Securities and Investments Commission (ASIC) that shortcomings in the exchange operator’s risk and compliance frameworks could have serious implications for the stability of the country’s financial markets.
On the bond markets, yields moved higher. The Australian 10-year government bond yield rose 1.8% to 5.042%, while the 2-year yield climbed 2.4% to 4.742%.
