Australian shares edged lower on Friday, with persistent disruptions to the Strait of Hormuz weighing on sentiment despite hopes for progress in ceasefire talks between the United States and Iran.
The S&P/ASX 200 fell 12.6 points, or 0.1%, to close at 8,960.6, with nine of the 11 sectors finishing in negative territory.
Despite the daily decline, the benchmark index recorded a 4.4% gain for the week, marking its third consecutive weekly advance.
Investors remained focused on the fragile ceasefire and upcoming U.S.-Iran negotiations scheduled to take place in Pakistan over the weekend, which are expected to provide further direction for markets.
Technology stocks led the declines, with WiseTech Global down 2.6%, Xero falling 2.7% and TechnologyOne retreating 0.7%.
Life360 dropped 3.3% after chief executive Lauren Antonoff said in a LinkedIn post that the company had parted ways with an unspecified number of employees as it restructures for an artificial intelligence-driven future.
Energy companies also came under pressure, with coal miners selling off as the ceasefire dampened expectations of sustained energy supply disruptions.
Whitehaven Coal fell 3.2%, and Yancoal declined 3%.
Among major producers, Santos lost 0.6%, while Woodside Energy slipped 0.2%, despite announcing an oil discovery at the Bandit prospect in the U.S. Gulf Coast.
Mining stocks were lower, as BHP fell 1.1%, and Rio Tinto dipped 0.3%. Fortescue dropped 1.3% after accelerating plans to eliminate fossil fuels across parts of its Pilbara operations, supported by the development of a large-scale off-grid renewable energy system.
Real estate investment trusts were among the strongest performers, with Goodman Group up 0.5%, Charter Hall Group adding 1.1% and Mirvac Group posting gains of 0.9%.
Financials were mostly higher; Commonwealth Bank added 0.5%, ANZ Group lifted 0.2%, Westpac gained 0.3%, while National Australia Bank dipped 0.3%.
In corporate developments, Magellan Financial Group rose 1.2% after shareholders overwhelmingly approved a merger with Barrenjoey at its extraordinary general meeting.
Meanwhile, Telix Pharmaceuticals jumped 5.2% after the US Food and Drug Administration accepted its resubmitted application for brain cancer imaging agent TLX101-Px1.
In bond markets, yields moved higher, with the 10-year rate rising to 4.969% and the two-year yield climbing to 4.683%, reflecting ongoing uncertainty around inflation and global economic conditions.
