Australian shares fall as doubts over US-Iran deal persist; banks, miners drag

AUSTRALIAN shares slipped on Friday, dragged by miners and banks, while domestic fuel supply concerns and doubts over whether upcoming US-Iran peace talks would help ease disruptions in the Strait of Hormuz weighed on risk sentiment.

The S&P/ASX 200 index was down 0.5 per cent at 8,914.30 points, as of 0021 GMT, after retreating 0.3 per cent in the previous session. The benchmark is on track for its worst week in four, down 0.5 per cent.

While a potential 10-day ceasefire between Israel and Lebanon lifted optimism that US-Iran negotiations would face one less hurdle, oil prices still climbed overnight as scepticism grew over whether forthcoming peace talks would ease supply disruptions.

Energy supply concerns drew added focus in Australia, where a fire at the country’s largest refinery, operated by Viva Energy, has cut its petrol output to roughly 60 per cent amid ongoing efforts to shore up fuel supplies.

Financials were the biggest laggards, down 0.8 per cent, with the “Big Four” banks losing between 0.4 per cent and 1 per cent. The sub-index is headed for its worst week since the Middle East conflict erupted on Feb 28.

Miners dropped 0.2 per cent, extending losses from the previous day despite support from firmer iron ore and copper prices. BHP and Rio Tinto dipped roughly 0.2 per cent each.

The sector has gained 1.6 per cent so far this week, and is poised for a fourth consecutive weekly gain, if the current momentum persists.

Gold miners fell 1.2 per cent and Consumer Discretionary Stocks retreated 1.5 per cent.

Energy stocks edged 0.2 per cent higher after Brent crude futures climbed US$4.46 overnight.

SEE ALSO

US stocks: S&P 500, Nasdaq edge up to new records with Middle East hopes in focus

European shares muted with Middle East developments, corporate results in focus

Santos and Woodside advanced more than 0.4 per cent each.

Among individual stocks, Insurance Australia fell as much as 1.6 per cent after the country’s competition regulator extended its probe into the company’s proposed takeover of RAC Insurance, citing competition concerns.

Paladin Energy was among top gainers, rising as much as 6.7 per cent, after the uranium producer upgraded its full-year production forecast for its Langer Heinrich mine.

Shares of Amplitude Energy jumped as much as 6.7 per cent on a binding agreement to supply gas from its East Coast Supply Project to AGL Energy.

New Zealand’s benchmark S&P/NZX 50 index reversed early gains to trade 0.2 per cent lower at 13,039.86 points. REUTERS