ASX slips with US-Iran talks in focus; oil rises above $US104

The Australian sharemarket dipped on Thursday, after the biggest single-session gain since the Middle East war began, as traders weighed conflicting statements from the US and Iran about negotiations to end the conflict.

The S&P/ASX 200 fell 8.60 points, or 0.1 per cent, to 8525.70 at 2.02pm AEDT after rising by 1.9 per cent in the previous session as investors piled back into beaten down stocks. Four of the 11 benchmark sectors finished in the red.

Brent Crude was trading around $US104.02 a barrel on Thursday as Iran reportedly knocked back a US-backed 15-point peace plan, putting forward its own demands for de-escalation, including reparations and recognition of its control over the Strait of Hormuz.

“As much as markets want to be taking a longer focus and look through the volatility, the reality is that the Middle East conflict is dictating movements,” said MLC Asset Management portfolio manager Anthony Golowenko.

“If there is no improvement in the outcome then it will become a more challenging not just for equities, but also the supply chain as it will become disrupted, and then we’d start to see some of those effects more acutely.”

With only friendly nations to Iran allowed to pass ships through the Strait of Hormuz safely, the ASX’s energy sector remained strong with Santos up 2.5 per cent to $7.85 and Karoon Energy 3.7 per cent to $1.98.

Woodside Energy firmed 2.3 per cent to $34.38 as it also took operational control of its Beaumont New Ammonia facility in Texas from OCI Global, which can produce 1.1 million tonnes of ammonia per year and may double US exports.

Counter-drone stocks paced the gains with investors looking to gain exposure to the conflict. DroneShield rallied 5.2 per cent to $4.48, and Electro Optic Systems 4.7 per cent to $9.45.

The major banks were mixed, led by a 0.6 per cent bounce in Commonwealth Bank to $173.18, while Westpac rose 0.2 per cent to $40.46. ANZ fell 0.7 per cent to $36.65 and National Australia Bank by 0.3 per cent to $42.56.

Gold miners weighed after the precious metal steadied at about $US4530 an ounce after a modest two-day gain. Newmont fell 2.9 per cent to $144.88, Genesis Minerals dropped 4.3 per cent to $5.85 and Resolute Mining by 6 per cent to $1.26.

Tech stocks also resumed heavy selling amid lingering concerns about the impact of artificial intelligence on software businesses. WiseTech Global lost 3.2 per cent to $38.33 and Xero 3.2 per cent to $72.40.

Stocks in focus

In company news, Infratil rose 3.9 per cent to $9.6 after upgrading CDC’s – its data centre unit – earnings guidance for FY27 to $680 million to $720 million. It cited strong demand and accelerated data centre construction.

Nufarm rallied 7.1 per cent to $1.97 as it expanded its strategic partnership with BP to support long-term growth in sustainable aviation fuel and renewable diesel.

AMP slid 0.4 per cent to $1.27. It’s named Adrian Ryan as acting chief financial officer from March 30, as Blair Vernon transitions to chief executive.

Airtasker added 2.2 per cent to 23¢ after striking a $5 million media partnership with Nine Entertainment, the owner of this masthead, to boost brand presence in Australia, funded via a two-year convertible note.

That concludes our coverage for today. We’ll be back again soon to bring you more live markets news and expert analysis.