Australia’s sharemarket has demonstrated remarkable resilience by securing its third consecutive daily advance, overcoming significant banking sector weakness through substantial gains in energy commodities driven by escalating Middle Eastern geopolitical tensions.
The benchmark S&P/ASX 200 index climbed 12.10 points (0.14%) to settle at 8820.60, while the broader All Ordinaries index gained 13.30 points (0.15%) to close at 9151.80. The Australian dollar simultaneously strengthened against the US currency, appreciating 0.21% to reach 66.97 US cents.
Market performance revealed significant sector divergence, with eight of eleven industry sectors finishing positively. Energy equities emerged as the standout performers, surging 2.40% as West Texas Intermediate crude oil reached a ten-week peak amid supply disruption concerns. Major energy producers Woodside Energy (+2.62% to $23.92), Santos (+2.77% to $6.31), and Beach Energy (+5.24% to $1.205) all recorded substantial gains.
IG market analyst Tony Sycamore attributed the oil price surge to anti-government protests in Iran that threatened approximately 3.3 million barrels of daily production. ‘The violent government response, with reports of thousands killed or arrested, has prompted US President Donald Trump to issue threats of military action and implement 25% tariffs on nations conducting business with Iran,’ Sycamore noted. Additional supply concerns emerged after suspected Ukrainian drones struck four Greek-managed oil tankers in the Black Sea on Tuesday.
The materials sector provided additional support following G7 discussions addressing supply chain vulnerabilities for critical minerals. Mineral Resources advanced 1.39% to $61.34, Alpha HPA jumped 3.49% to $0.89, and Wildcat Resources climbed 4.71% to $0.445. Major iron ore producers BHP (+1.13%), Rio Tinto (+0.78%), and Fortescue (+0.35%) all closed higher despite precious metals including gold, aluminium, and copper retreating from record highs.
These gains partially offset substantial banking sector weakness, with financial stocks declining 0.73% collectively. Commonwealth Bank led the downturn, falling 1.25% to $152.88, followed by National Australia Bank (-1.13% to $41.91), Westpac (-0.57% to $38.28), and ANZ (-0.27% to $36.38).
Individual stock movements featured Neuren Pharmaceuticals soaring 6.06% to $20.47 after projecting potential 2028 sales of $US700 million for its Rett syndrome treatment DAYBUE. Endeavour Group rebounded 2.16% to $3.78 following profit guidance of $400-411 million for the December half. Conversely, Humm Group declined 0.68% to $0.74 as directors opposed a ‘reckless and flawed’ board restructuring proposal.