ASX down 2.6pc for week; $190b wiped since Iran war began

The Australian sharemarket fell to its lowest weekly close since December, as the escalating US-Israel war with Iran sent oil prices higher and fuelled expectations of an RBA rate hike on Tuesday.

The S&P/ASX 200 index lost 2.6 per cent for the week – its lowest weekly finish since December, as it retreated a further 11.90 points, or 0.1 per cent, to 8617.10 on Friday.

Since the war started on February 28, the benchmark has slumped 6.3 per cent, wiping out more than $190 billion in market value – more than the entire market capitalisation of Newmont, the ASX’s third-largest company.

Materials weighed as mining giant BHP dropped 2.3 per cent to $49.80 as China widened a ban on its iron ore for the second time in two weeks. Fortescue gained 4.1 per cent to $20.48 as Macquarie noted it stood to benefit from its rival’s misfortune.

Gold miner Northern Star tanked 18.8 per cent to $21.75 as it warned that hitting the bottom end of its 2025-26 production guidance would be challenging, citing weaker milling at the Kalgoorlie Super Pit and reduced output at its Jundee mine.

Mineral explorer Syrah Resources plunged 29.2 per cent to 17¢ after the US International Trade Commission rejected tariffs on Chinese graphite anode materials.

Materials offset gains in six of the 11 sectors, underpinned by the banks, as an expected interest rate rise next Tuesday would boost net interest margins. National Australia Bank was the strongest bank, up 1.5 per cent to $47.11, while Commonwealth Bank rose 1.3 per cent to $173.76.

Energy stocks were higher as oil traded flat at around $US101 a barrel as the US relaxed restrictions on Russian oil to ease market pressures as Iran pledged to keep the Strait of Hormuz effectively shut.

Santos rose 0.5 per cent to $7.53 and Ampol by 1.9 per cent to $30.85, while Woodside Energy was flat at $31.04. Yancoal climbed 4.5 per cent to $8.06 to rise almost 20 per cent for the week as the Middle East conflict buoys coal prices.

Counter-drone stocks rallied after Electro Optic Systems secured a $US42 million contract for a Middle Eastern customer amid the conflict in Iran. Shares rose 18.4 per cent to a record $11.74. DroneShield gained 6.4 per cent to $4.17.

Stocks in focus

In company news, Lifestyle Communities soared 17.2 per cent to $5.31 after US-based prefab giant Hometown bought 11.9 million shares in the group from HMC Capital.

Small-cap biotech Immutep plummeted 88.6 per cent to 4.5¢ as it told investors its lead drug candidate failed as a lung cancer treatment.

Dalrymple Bay Infrastructure rose 6 per cent to $4.93 as it priced its first $350 million five-year fixed-rate bond in the Australian Medium-Term Note market.

Qantas fell 0.7 per cent to $8.61 as it reached a $105 million settlement in the class action over flight credits issued during COVID-19.

That’s a wrap on today’s news. Join us again soon for more live markets news.