Australian shares edged lower on Thursday, retreating from the previous session’s strong gains as investors assessed conflicting signals from the United States and Iran on efforts to end the Middle East conflict.
The S&P/ASX 200 fell 8.6 points, or 0.1%, to close at 8,525.7, with five of the index’s 11 sectors finishing in negative territory.
Market sentiment remained cautious after reports that Iran rejected a 15-point peace proposal from the U.S., instead outlining its own conditions for de-escalation.
Technology stocks led the declines, with WiseTech Global and Xero both falling 3.2%, TechnologyOne down 1.2%, and NextDC easing 1%.
Real estate investment trusts also weakened, with Goodman Group and Scentre Group each slipping 0.7%, Charter Hall dropping 1.7%, and Mirvac Group falling 0.6%.
In contrast, the energy sector remained supported by rising oil prices. Santos gained 2.5%, Beach Energy rose 2.4%, Ampol added 0.4%, and Viva Energy climbed 2.5%.
Woodside Energy advanced 2.3% after taking operational control of its Beaumont New Ammonia facility in Texas from OCI Global.
The major banks delivered a mixed performance. Commonwealth Bank and Westpac added 0.6% and 0.2%, respectively, while National Australia Bank slipped 0.3%, and ANZ Group declined 0.7%.
The Materials sector finished broadly lower despite modest gains in some of the largest miners. BHP rose 0.2% and Rio Tinto gained 0.7%, while Fortescue fell 1%.
Gold miners weighed on the index, as Northern Star slipped 0.2%, Evolution Mining dropped 2%, and Newmont declined 2.9%.
Defence-related stocks outperformed, reflecting heightened geopolitical tensions. DroneShield surged 5.2%, while Electro Optic Systems gained 4.7%.
In corporate developments, Washington H. Soul Pattinson rose 0.2% after reporting a 9.7% return for the half. The company also lifted its interim dividend by 9.1% to 48 cents.
Airtasker gained 2.2% after securing a $5 million media partnership with Nine Entertainment aimed at boosting brand visibility, funded through a two-year convertible note.
On the bond markets, yields moved higher, with the 10-year rate rising 1.6% to 5.015% and the 2-year yield climbing 1.9% to 4.736%.
