Australian shares fell on Friday as renewed clashes between United States and Iranian forces unsettled investors and raised concerns over the outlook for a potential peace agreement in the Middle East.
The S&P/ASX 200 Index dropped 133.7 points, or 1.5%, to 8,744.4, after earlier falling as low as 8,726.6. Ten of the benchmark’s 11 sectors finished lower.
Despite the decline, the index still recorded a weekly gain of 0.2%.
Financial stocks led the market lower, with Westpac Banking Corp falling 4.8% as the stock traded ex-dividend.
Commonwealth Bank declined 1.9%, National Australia Bank lost 2.9%, and ANZ Banking Group shed 1.5%.
Real estate investment trusts also weighed heavily on the market. Goodman Group fell 1.9%, Charter Hall Group slipped 1.3%, Mirvac Group declined 2.3%, and Stockland lost 3.2%.
Mining stocks were weaker, with BHP Group down 1%, Rio Tinto falling 0.8%, and Fortescue Metals Group retreating 0.7%.
Energy shares also traded lower despite renewed geopolitical tensions, following overnight weakness in oil prices. Santos fell 1.4%, Woodside Energy lost 1.4%, and Beach Energy declined 1.8%.
Communication services was the only sector to finish higher, as News Corp gained 2.6% after reporting third-quarter results that exceeded expectations and saying it remained on track to deliver a record annual profit.
REA Group rose 1.4% after lowering its full-year cost growth guidance and reporting strong third-quarter earnings growth supported by record audience figures and resilient demand.
Tabcorp Holdings plunged 14.2% following the launch of an AUSTRAC investigation into “serious concerns” regarding the company’s ability to identify, mitigate and manage money laundering and terrorism-financing risks.
The latest fall followed a 23.5% slump in Tabcorp shares during Thursday’s session.
Bond yields moved higher, with the Australian 10-year government bond yield rising 0.3% to 4.994%, while the two-year yield increased 0.4% to 4.695%.
