The Australian sharemarket barely extended Friday’s record close on Monday, as escalating conflict in the Middle East weighed on risk sentiment, but boosted oil and gold companies.
The S&P/ASX 200 added 2.3 points to 9,200.9, despite seven of the 11 sectors trading lower.
Technology stocks led the declines. WiseTech Global dropped 4.7%, TechnologyOne lost 4.3, while Xero and NextDC shed 3.8% apiece.
Financials also dragged on the index, echoing a slump in U.S. banks and private equity firms on Friday after UK mortgage provider Market Financial Solutions collapsed.
Commonwealth Bank declined 0.7%, ANZ fell 1.8%, Westpac dropped 1.7%, and National Australia Bank slid 2.9%.
Over the weekend, United States-Israeli strikes killed Ali Khamenei, prompting Iran to retaliate with attacks across parts of the Gulf, including Iraq, Kuwait, Bahrain, Qatar, the United Arab Emirates and Oman.
The escalation disrupted key aviation hubs and threatened oil shipments through the Strait of Hormuz.
Oil prices surged in response, pushing the Energy sector higher. Woodside Energy rallied 6.8%, Santos rose 6.7%, and Karoon Energy soared 15.2%.
Gold also rallied to multi-week highs. Gold miners benefited from the move higher, as Newmont jumped 5.7%, Northern Star Resources gained 4.8%, and Evolution Mining advanced 6.6%.
In defence-related names, DroneShield lifted 6.6% amid heightened security concerns.
Travel stocks moved lower as the conflict disrupted international aviation. Qantas fell 5.4%, while Flight Centre lost 5.7%.
Among corporate developments, Magellan Financial Group entered a trading halt as it launched an equity raising to fund a $1.6 billion merger with Barrenjoey Capital Partners.
Ampol rose 3.2% after further assessment by the Australian Competition and Consumer Commission identified 54 EG Australia sites across 51 areas that may raise competition concerns, down from 115 locations flagged in January, in relation to its proposed takeover.
On the bond markets, 10-year and two-year yields were down 0.6% and 0.5% to 4.641% amd 4.175%, respectively.
