The Australian sharemarket slipped on Tuesday as tensions in the Middle East weighed on investor sentiment, after a social media warning from United States President Donald Trump, urging the evacuation of Iran’s capital Tehran, spooked markets and pushed oil prices higher.
The S&P/ASX 200 Index fell 7.1 points or 0.1% to 8,541.3, with seven of 11 sectors finishing in the red.
Utilities and financials led the day’s losses, as geopolitical concerns offset strength in select commodities and energy stocks.
Major utility players were among the laggards, with Origin Energy falling 0.9%, Mercury NZ tumbling 4.2%, and AGL Energy down 1.1%.
The financial sector also struggled. Macquarie Group dropped 0.4%, ANZ and Westpac eased 0.5% apiece, and Commonwealth Bank edged 0.2% lower.
Crude oil prices resumed their climb after Trump’s comments escalated fears of a widening conflict between Israel and Iran.
The fighting entered its fifth consecutive day on Tuesday, sparking concerns over disruptions to regional oil flows and prompting a renewed bid for energy assets.
Beach Energy rose 1.1%, Viva Energy gained 1.5%, while Santos edged 0.5% higher, extending Monday’s rally after the company received an A$29 billion takeover bid from a consortium led by Abu Dhabi National Oil Company.
Gold stocks also found support as spot prices firmed on safe-haven demand. Newmont added 2.5% and Northern Star Resources advanced 1.5%.
However, St Barbara was a notable casualty, plunging 14.5% after revising its full-year production guidance sharply lower. The gold miner now expects to produce between 50,000 and 52,000 ounces, down from its previous range of 55,000 to 65,000 ounces.
Meanwhile, VBX Limited surged 10% in its trading debut, as investors backed the sole owner of the Wuudagu bauxite project in Western Australia.
Uranium stocks extended their recent rally, fuelled by strong demand and a short squeeze after the Sprott Physical Uranium Trust announced fresh plans to raise an upsized US$200 million to purchase additional nuclear fuel.
Deep Yellow surged 5.7%, Boss Energy rose 3.2%, Silex Systems climbed 3%, and Paladin Energy gained 4.4%.
Bond yields remained little changed, with the yield on the 10-year at 4.262%, while the 2-year yield was at 3.328%.
