The Australian sharemarket edged lower on Friday but remained just below record highs as investors monitored diplomatic developments in the Middle East following reports that Iran could bar United States and Israeli vessels from using the Strait of Hormuz.
The S&P/ASX 200 Index fell 8.0 points, or 0.1%, to close at 9,263.6, with seven of the 11 sectors finishing the session in negative territory.
Despite the modest decline, the benchmark index gained 3.2% for the week after reaching record highs during the previous two trading sessions.
The materials sector led the market higher as copper prices climbed to fresh record highs overnight. BHP rose 0.2% and Rio Tinto gained 0.8%, while Fortescue slipped 2.3%.
Gold miners also outperformed, supported by stronger bullion prices. Northern Star Resources advanced 2.3%, Evolution Mining gained 3.1% and Newmont added 2.7%.
Information technology stocks were among the better performers, with Xero rising 1.5%, WiseTech Global climbing 4.3% and TechnologyOne adding 0.6%.
Financial stocks weighed on the index, with Commonwealth Bank falling 1.0%, National Australia Bank losing 1.1%, Westpac declining 1.6% and ANZ easing 1.0%.
In company news, James Hardie Industries jumped 5.8% after reporting net income of US$104.3 million (A$148.36 million) for the three months ended 30 June, an increase of 67% from a year earlier.
On the bond markets, the 10-year and two-year government bond yields were unchanged at 4.983% and 4.562%, respectively.
