Australian shares closed modestly higher on Thursday, consolidating the strongest rally in a year as investors balanced optimism over a potential diplomatic resolution in the Iran conflict against lingering geopolitical risks.
The S&P/ASX 200 rose 21.4 points, or 0.2%, to 8,973.2, despite seven of the index’s 11 sectors finishing in negative territory.
Market sentiment remained fragile after Tehran said several terms of its ceasefire agreement with Washington had been breached, citing ongoing Israeli strikes in Lebanon and continued hostilities in the Gulf, with attention is now turning to scheduled U.S.-Iran talks in Pakistan on Friday.
Technology stocks led the declines, with the sector falling 6.5%. WiseTech Global dropped 10.9%, Xero fell 8.6%, TechnologyOne lost 5.2%, and NextDC slipped 2.3%, while Life360 declined 7%.
The Materials sector also weakened, with major miners mostly lower. Rio Tinto fell 1.1%, and Fortescue Metals Group dropped 2.4%, while BHP edged up 0.1%.
Gold miners were mixed as bullion prices steadied around US$4,713 per ounce.
Evolution Mining declined 1.2% and Newmont fell 1.6%, while Northern Star Resources gained 2.3%.
Packaging group Orora slumped 18% after pausing its on-market share buyback and downgrading earnings guidance for its Saverglass division, citing disruption to operations and demand linked to the Middle East conflict.
Energy stocks provided the main support for the index, tracking a rebound in oil prices as markets monitored the fragile ceasefire.
Woodside Energy rose 4%, Santos gained 2.5%, and Beach Energy added 2.1%.
Refiners also advanced, with Ampol climbing 3.5% and Viva Energy rising 3.3% after securing a deal with Export Finance Australia to underwrite oil purchases.
Among individual stocks, Bendigo and Adelaide Bank jumped 8.4% after flagging workforce changes across its technology and operations divisions as part of a cost-cutting and efficiency drive.
Ardea Resources gained 8.2% after announcing that its Kalgoorlie Nickel Project had been selected for the Australian Government’s Investor Front Door pilot programme.
In fixed income markets, yields moved lower, with the 10-year bond rate falling 0.3% to 4.924% and the two-year yield declining 0.6% to 4.636%, reflecting a cautious outlook among investors amid ongoing geopolitical uncertainty.
