Australian shares declined on Monday, with the S&P/ASX 200 index falling 0.3% to 8,705.40 by 0018 GMT, according to reports from Reuters. The benchmark had ended flat on Friday and finished the week with a 0.1% loss. The decline was primarily driven by weakness in heavyweight sectors including banks and mining companies, reflecting reduced risk appetite amid geopolitical uncertainties. Latest real-time data from Market Index shows the S&P/ASX 20 index with comprehensive share price information for the top 20 companies by market capitalization.
Iran and the U.S. exchanged fresh threats over the weekend, as reported by Reuters, underscoring months of deadlock between the two countries and adding to investor concerns about regional tensions and oil supplies. Oil prices eased on Monday, however, as hopes for a recovery in shipments from top exporter Saudi Arabia offset news of a Houthi attack on Riyadh. The geopolitical tensions have reinforced expectations that interest rates would stay higher for longer worldwide, contributing to the cautious market sentiment.
Mining stocks slipped 0.5% after a 1.9% jump in the previous session, with major miners BHP, Rio Tinto and Fortescue declining between 0.5% and 0.7%, according to Reuters reports. Among gold miners, Northern Star Resources and Evolution Mining were down 0.7% and 0.2% respectively. Bullion prices eased as the Middle East tensions added to inflation concerns and reinforced expectations that interest rates would stay higher for longer worldwide.
Financials slipped for a second straight session, falling 0.3%, with three of the 'Big Four' banks trading in negative territory while ANZ Group remained little changed, as reported by Reuters. Technology stocks also declined, with accounting software firm Xero slipping 1.4% and logistics software maker WiseTech Global declining 1%. Healthcare stocks were largely unchanged, with a 2.7% rise in Cochlear largely offset by a 4.7% loss in Telix Pharmaceuticals.
Among individual stocks, Perpetual was the worst performer on the benchmark, falling as much as 15.8% in its weakest trade since November 2022 after the asset manager rebuffed EQT AB's latest buyout bid, according to Reuters. In New Zealand, the benchmark S&P/NZX 50 index edged up 0.1% to 13,756.44. Telix Pharmaceuticals agreed to buy Germany-based ITM Isotope Technologies Munich SE for about $1.65 billion, further boosting its radiopharmaceutical ambitions.
