ASX gains 1pc for week to snap three-week losing streak

Australian shares snapped a three-week losing streak, with investors weighing shifting signals on a potential Middle East peace deal as the conflict enters its fifth week.

The S&P/ASX 200 rose 1 per cent for the week – its first gain since the Iran war began on February 28 – despite falling 9.40 points, or 0.1 per cent, to 8516.30 on Friday. The pullback came as the Middle East conflict showed no sign of easing, overshadowing optimism after the US extended by 10 days its deadline for Iran to reach a deal.

The conflict has wreaked havoc since a record close on March 2, with the ASX 200 falling as much as 9.1 per cent from its peak, wiping out about $300 billion in value at its lowest point.

Markets remain volatile and investors are split over whether tensions will ease or escalate. Their focus is on the Strait of Hormuz – a key Middle East oil artery – which remains effectively closed, supporting crude prices and adding to inflation pressures.

Brent crude fell 0.6 per cent to $US107.39 after strong gains in the prior session as Trump’s delay offered the market near-term respite while prolonging uncertainty over the course of the war.

The ASX energy sector has risen almost 20 per cent since the conflict began. On Friday, Santos rose 1.3 per cent to $7.95 and Ampol by 2 per cent to $33.79. Woodside Energy gained 0.3 per cent to $34.47, even as it shut North West Shelf production due to Tropical Cyclone Narelle.

Whitehaven Coal jumped 4.9 per cent to $9.23 after a UBS upgrade to “buy”, citing gas-to-coal switching because of disruption to supply and rising prices.

Technology companies led losses, with NextDC down 7.9 per cent to $11.44 as it abandoned its quest to raise $500 million from the bond markets, and Codan was down 5.9 per cent to $32.37. Financials weighed as National Australia Bank dropped 1.3 per cent to $41.99, and Macquarie slipped 2.2 per cent to $201.42.

Materials reduced total losses in the past month to 15 per cent after a 4.5 per cent rebound this week. Friday saw strong gains from the major miners with BHP up 0.3 per cent to $50.37, Rio Tinto by 1.5 per cent to $153.23, Fortescue by 1.7 per cent to $20.19, and IGO by 3.9 per cent to $7.93 after a UBS upgrade.

Stocks in focus

BlueScope Steel fell 0.4 per cent to $26.73 as it advanced plans to develop its 1200-hectare surplus land portfolio across NSW and Victoria, with more than 60 per cent already zoned.

ANZ fell 0.4 per cent to $36.49. This came as it hired two co-managing directors, Michael Peric and Trevor Vail, to lead its scandal-plagued markets division.

Suncorp gained 0.1 per cent to $16.42 after saying chief executive Steve Johnston would take temporary leave following a medical procedure, with chief financial officer Jeremy Robson acting as chief executive.