The Australian sharemarket closed at its highest level in two months on Monday as investors welcomed signs of a peace agreement between the United States and Iran, lifting risk sentiment across regional markets.
The S&P/ASX 200 Index rose 110.0 points, or 1.3%, to 8,914.0, with seven of the 11 sectors finishing in positive territory.
Investor sentiment improved after U.S. President Donald Trump said the Strait of Hormuz would be “opening” on Friday following the signing of a peace agreement with Iran.
Materials stocks led the advance as spot gold prices rebounded, driving strong gains among gold producers.
Northern Star Resources climbed 7.9%, Evolution Mining surged 10.0%, and Newmont Corporation gained 6.8%.
Ora Banda Mining led the gains on the index, jumping 16.3% after announcing it had signed a $233 million engineering, procurement and construction (EPC) contract with GR Engineering Services for the expansion of its Davyhurst processing plant to a capacity of 3 million tonnes per annum.
Vault Minerals rose 14.7% after forecasting gold production of between 332,000 and 360,000 ounces for the 2026 financial year.
The major diversified miners also contributed to the market's gains. BHP advanced 3.6%, Rio Tinto added 2.7%, and Fortescue gained 3.0%.
Real estate investment trusts moved higher, supported by easing bond yields. Goodman Group rose 1.7%, Charter Hall climbed 3.2%, Stockland gained 3.3%, and Mirvac added 1.4%.
Financial stocks also strengthened. Commonwealth Bank rose 1.4%, National Australia Bank gained 2.6%, Westpac added 0.9%, and ANZ advanced 1.0%.
The Energy sector was the main laggard as oil prices fell more than 4% following news of the U.S.-Iran agreement and the planned reopening of the Strait of Hormuz.
Ampol dropped 7.3%, Santos fell 8.4%, and Viva Energy shed 5.8%.
Woodside Energy declined 5.2% after responding to recent media speculation regarding a possible transaction involving ExxonMobil.
The company said it was not in discussions with ExxonMobil and was unaware of any proposal.
In corporate news, Sigma Healthcare, owner of Chemist Warehouse, surged 6.1% after deciding against pursuing a takeover bid for UK pharmacy chain Boots.
ASX Ltd gained 2.6% after acknowledging that statements it made in early 2022 regarding the progress of its major technology upgrade programme were misleading. The company agreed to pay a $20.5 million penalty to settle legal proceedings brought by the Australian Securities and Investments Commission.
OOh!media climbed 7.3% after revealing it had received revised indicative takeover proposals valued at approximately $1.60 per share following a three-week due diligence process.
Updated bids were submitted by Pacific Equity Partners, I Squared Capital and Oaktree Capital Management.
On the bond markets, yields moved lower as investors reduced expectations for further monetary tightening. Australia's 10-year government bond yield fell 1.0% to 4.437%, while the two-year yield declined 1.2% to 4.037%.
