Australian shares edged modestly higher on Wednesday, with the S&P/ASX 200 trimming earlier gains as investor enthusiasm over potential United States-Iran peace talks moderated.
The benchmark index rose 7.90 points, or 0.1%, to close at 8,978.7, with seven of the 11 sectors finishing in negative territory.
Sentiment earlier in the session was supported by reports that the United States and Iran are seeking to organise a second round of negotiations in the coming days, ahead of the expiry of a ceasefire agreement next week.
The Energy sector led declines following a pullback in crude prices overnight. Shares in Woodside Energy fell 2.4%, Santos dropped 2.9%, Beach Energy declined 2.8%, and Viva Energy slid 4.5%.
Utilities stocks also came under pressure, with Origin Energy down 1.3%, Genex Power falling 3%, and AGL Energy closing 1.7% lower.
Consumer Staples weakened, as Woolworths Group fell 0.9%, Coles Group eased 0.5%, Elders dropped 1.6%, and A2 Milk Company declined 1%.
The Materials sector delivered a mixed performance. BHP was little changed, Rio Tinto slipped 0.3%, while Fortescue added 0.8%.
Losses among the major banks also capped the index’s advance. Commonwealth Bank edged down 0.2%, National Australia Bank fell 0.4%, Westpac dropped 1.9%, and ANZ Group declined 0.6%.
Technology stocks were the standout performers, providing the main source of support for the broader market. WiseTech Global surged 3.6%, Xero gained 2.6%, TechnologyOne rose 2.9%, and NextDC advanced 2.2%.
In corporate news, Virgin Australia jumped 7.2% after reaffirming its full-year earnings guidance, supported by hedging levels of 93% for Brent crude.
Nufarm surged 11.3% after forecasting a 17% increase in first-half underlying EBITDA and outlining plans to cut an additional $50 million in costs.
In fixed income markets, Australian government bond yields were mixed, with the 10-year yield rising 0.2% to 4.933%, while the 2-year yield edged 0.04% lower to 4.623%.
