The Australian sharemarket concluded Thursday’s session with minimal movement as geopolitical concerns and domestic monetary policy expectations created headwinds. The S&P/ASX 200 Index edged up 2.6 points to 8927.50, despite dipping to 8858.90 earlier in the day. Eight out of eleven sectors experienced declines, reflecting a cautious market mood. Fresh threats from former US President Donald Trump regarding potential military action against Iran contributed to the subdued performance, overshadowing what initially appeared to be a positive start.
Commodity markets reacted strongly to the international uncertainty. Gold prices surged $US180, or 3.3 per cent, reaching a record $US5602 per ounce, while crude oil surpassed $US64 a barrel for the first time in six months. Consequently, some gold miners saw gains, with Northern Star rising 2.3 per cent to $29.49, Newmont increasing 2.7 per cent to $188.47, and Evolution Mining climbing 3 per cent to $15.72. Copper also reached a record high of $US13,965 per tonne, boosting Capstone Copper by 4.7 per cent to $17.54 and BHP by 1.9 per cent to $51.51.
Conversely, rare earths producers experienced losses following unconfirmed reports that the Trump administration might abandon plans to set price floors. Lynas fell 3.7 per cent to $15.60, and Iluka Resources plummeted 14 per cent to $5.55, with Iluka also flagging a $565 million pre-tax hit. Tech and retail stocks also underperformed amid the prospect of a Reserve Bank of Australia (RBA) rate increase next week. JB Hi-Fi dropped 2.3 per cent to $81.50, Wesfarmers declined 0.9 per cent to $83.12, and WiseTech Global decreased 2.2 per cent to $59.43.
Among individual stock movements, Appen, a company providing data for machine learning and artificial intelligence, surged 29.7 per cent to $1.41 after reporting strong fourth-quarter revenue. IGO, a mining and exploration company, fell 5.2 per cent to $8.57 after a weaker-than-expected quarter. AMP dropped 4.8 per cent to $1.64 as it updated its cost allocation methodology. Qube rose 0.4 per cent to $4.83 following an extension of the exclusivity period by Macquarie Asset Management.
