By Matt Bell
Australian shares notched their biggest weekly gain since 2022 as a fragile ceasefire brokered between the US and Iran lifted risk appetites, with investors now turning to weekend talks between the countries for direction.
The S&P/ASX 200 rose 4.4 per cent for the week – the strongest since October 2022 and a third consecutive week of gains – supported by a broad rally that included a 2.6 per cent surge on Wednesday, the largest one-day gain in a year.
The benchmark faded into the close on Friday, falling 12.60 points, or 0.1 per cent, to 8960.6, with eight of 11 sectors lower as traders pared risk ahead of the US-Iran talks in Pakistan.
Although oil headed for its biggest weekly loss in more than nine months, investors remained focused on whether tanker traffic resumes through the Strait of Hormuz, with Iran reportedly seeking to impose a toll on shipments.
“Despite a fragile ceasefire, investors are awaiting developments of peace talks over the weekend,” WAM Global deputy portfolio manager William Liu said.
“Investors are looking to a willingness to negotiate a 10-point plan, which President Donald Trump has mentioned as workable, signalling that the US is willing to move beyond military objectives and into a transactional phase.”
Technology stocks led declines, tracking weakness in the US, with WiseTech Global down 2.6 per cent to $37.63 and Xero by 2.7 per cent to $71.46. Life360 fell 3.3 per cent to $19.48 after flagging job cuts as it reshapes for an AI-led strategy.
Miners were lower, with Fortescue down 1.3 per cent to $20.26 as it accelerated plans to remove fossil fuels from parts of its Pilbara operations, while BHP lost 1.1 per cent to $53.98 and Rio Tinto 0.3 per cent to $171.23.
Energy stocks weakened as easing geopolitical risk weighed on coal, with Whitehaven Coal down 3.2 per cent to $8.12 and New Hope by 2.6 per cent to $5.18. Santos fell 0.6 per cent to $7.90 and Woodside Energy 0.2 per cent to $33.28 as Brent crude rose 0.8 per cent to $96.72.
Real estate outperformed, with Vicinity Centres up 3.2 per cent to $2.56, while financials were firmer as the most of the major banks rose with Commonwealth Bank up 0.5 per cent to $183.38.
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