Australian shares finished little changed on Friday as gains in banking and energy stocks offset weakness in the materials sector, though the market still recorded its lowest weekly close since December amid ongoing volatility linked to the Iran conflict.
The S&P/ASX 200 Index slipped 11.9 points, or 0.1%, to close at 8,617.1, with six of the 11 sectors ending the session in positive territory.
Despite the relatively steady finish, the benchmark index declined 2.6% for the week, extending last week’s losses of 3.8% as investors grappled with sharp swings in crude oil prices and the broader economic implications of disruptions around the Strait of Hormuz.
Materials stocks were the main drag on the market, with major mining companies delivering a mixed performance.
BHP fell 1.3% after China reportedly expanded its ban on the miner’s iron ore for the second time in two weeks. In contrast, Rio Tinto and Fortescue recorded gains of 3.1% and 4.1%, respectively.
Gold producers were also under pressure. Northern Star Resources led declines on the index, tanking 18.8% after warning that achieving the lower end of its 2025–26 financial year production guidance may prove difficult.
The company told investors that output is now expected to exceed 1.50 million ounces, down from its 2 January guidance of between 1.6 million and 1.7 million ounces.
Evolution Mining also closed 3.2% lower, while Newmont added 0.5%.
The technology sector posted modest gains during the session. Shares in Xero were up 2.6%, TechnologyOne ticked up 0.1%, and NextDC moved 3.9% higher, while WiseTech Global ended the day 0.8% lower.
DroneShield was the strongest performer on the ASX 200, rising 6.4% after its defence technology peer Electro Optic Systems secured a US$42 million contract from a Middle Eastern customer amid the escalating regional conflict.
Shares in Electro Optic Systems surged 18.4%.
Financial stocks provided solid support to the broader market. Commonwealth Bank rose 1.3%, National Australia Bank climbed 1.5%, Westpac gained 1.1% and ANZ added 0.5%.
Energy stocks also advanced as oil prices remained elevated. Santos rose 0.5%, Ampol gained 1.9%, while Woodside finished little changed.
Elsewhere in the resources sector, mineral explorer Syrah Resources plunged 29.2% after the U.S. International Trade Commission reversed last month’s decision to impose tariffs on Chinese graphite anode materials, dealing a blow to the company’s outlook.
On the bond markets, the yield on the 10-year Australian government bond fell 0.9% to 4.951%, while the two-year yield was broadly unchanged at 4.519%.
