Australian shares ended Monday's session little changed as investors weighed ongoing uncertainty surrounding ongoing negotiations between the United States and Iran, with the prolonged conflict continuing to influence energy markets and inflation expectations.
The S&P/ASX 200 Index slipped 2.3 points to close at 8,729.4, with eight of the benchmark's 11 sectors finishing in negative territory.
Healthcare stocks led the declines, weighing on the broader market. CSL fell 2.5%, Sonic Healthcare lost 1.4%, Fisher & Paykel Healthcare dropped 1.9%, while ResMed posted the steepest fall in the sector, tumbling 7.6%.
Real estate investment trusts were also under pressure, with Charter Hall Group easing 0.6% and Scentre Group declining 1.6%.
Lendlease fell 5.5% after announcing the sale of development rights for the Milano Santa Giulia mixed-use project in Milan for approximately A$250 million.
The Financial sector edged lower overall as the major banks delivered mixed performances. Commonwealth Bank slipped 1.0%, and ANZ fell 0.4%, while Westpac rose 0.4% and National Australia Bank added 0.1%.
Technology stocks provided the strongest support for the market, buoyed by continued optimism around global artificial intelligence spending and strong performances from US technology peers.
Xero surged 7.8%, WiseTech Global rallied 8.7%, and TechnologyOne gained 6.4%, making information technology the best-performing sector of the day.
Energy shares were also supported by higher oil prices amid renewed tensions in the Middle East and ongoing uncertainty surrounding a permanent ceasefire agreement between Washington and Tehran.
Beach Energy gained 1.4%, and Viva Energy rose 0.5%, while Santos edged 0.1% lower and Woodside Energy finished unchanged.
The Materials sector posted moderate gains, helped by strength among the major miners.
BHP advanced 0.3% to a record closing high, Rio Tinto rose 1.6%, and Fortescue gained 0.9%.
Among individual stocks, Syrah Resources surged 16.2% after resolving its offtake dispute with Tesla. The graphite producer said the electric vehicle manufacturer had accepted that the alleged default conditions underpinning the disagreement had been remedied.
DroneShield was among the session's weakest performers, falling 8.6% after shareholders delivered a significant protest vote against the company's remuneration report at its annual general meeting.
The company disclosed that 50.5% of votes cast opposed the remuneration report, well above the 25% threshold required to trigger a first strike under Australian corporate governance rules.
On the bond markets, Australian government bond yields moved higher. The 10-year bond yield rose 0.5% to 4.876%, while the two-year yield gained 0.4% to 4.568%.
