The Australian sharemarket slid to a three-week low on Monday, as fears of an Iranian response to US airstrikes raised concerns about a surge in crude oil prices, despite Commonwealth Bank reaching a record high.
In a volatile trading session, the benchmark ASX200 index fell 30.6 points, or 0.36%, to close at 8,474.9 — its lowest level since June 3. The index recovered slightly after being down nearly 1% earlier in the day. The broader All Ordinaries index also declined, dropping 35.5 points, or 0.41%, to 8,688.
The Australian dollar also weakened amid geopolitical uncertainty, falling to US64.18c.
Eight out of 11 sectors ended the day in negative territory, with financials and energy leading the losses.
Geopolitical Fears Weigh on Markets
IG market analyst Tony Sycamore said the market sell-off reflected concerns in line with US futures after the United States launched B-2 stealth bomber strikes on three Iranian nuclear facilities over the weekend.
“The US maintains the strikes were intended to curb Iran’s nuclear ambitions, not force regime change. However, Trump’s rhetoric suggests openness to further military action,” Mr Sycamore said.
“You might have expected greater volatility today. Whether that’s due to caution or the lack of an immediate Iranian response remains to be seen — for now, markets are waiting for further developments.”
Commonwealth Bank Hits Record High
Despite the overall market downturn, Commonwealth Bank stood out as a bright spot, reaching a new record high of $184.41 before ending the day up 1% at $184.35.
Mr Sycamore described Commonwealth Bank as “a juggernaut that steamrollers people,” noting it remains the strongest performer among the banks.
“It’s the best bank in the sector and the one investors want to own,” he said.
Other major banks saw mixed results:
- Westpac gained 0.63% to $33.42
- National Australia Bank slipped 0.08% to $38.88
- ANZ fell 0.63% to $28.21
Energy and Mining Stocks Mixed
Energy stocks, which initially rallied on the back of rising oil prices, pared some of their early gains but still finished mostly higher.
- Takeover target Santos rose 1% to $7.78
- Woodside Energy closed flat
- Ampol added 0.47% to $5.86
Iron ore miners, however, continued their recent decline:
- BHP fell 1.57% to $35.64
- Rio Tinto slipped 0.33% to $101.83
- Fortescue Metals dropped 1.02% to $14.54
Company-Specific Moves
Qantas shares dipped 1.85% to $10.08, as higher oil prices pressured the airline’s stock.
Discount retailer The Reject Shop announced shareholders had overwhelmingly approved a $259 million takeover bid by Canadian chain Dollarama at a meeting on Monday.
Meanwhile, Adairs shares plummeted 20.5% to $2.05 after the homewares and furniture retailer warned that its full-year earnings would fall short of last year’s results.
