Business Recorder
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% at 8,914.30 points, as of 0021 GMT, after retreating 0.3% in the previous session. The benchmark is on track for its worst week in four, down 0.5%. 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% amid ongoing efforts to shore up fuel supplies. Financials were the biggest laggards, down 0.8%, with the “Big Four” banks losing between 0.4% and 1%. The sub-index is headed for its worst week since the Middle East conflict erupted on February 28. Miners dropped 0.2%, extending losses from the previous day despite support from firmer iron ore and copper prices. BHP and Rio Tinto dipped roughly 0.2% each. The sector has gained 1.6% so far this week, and is poised for a fourth consecutive weekly gain, if the current momentum persists. Gold miners fell 1.2% and Consumer Discretionary Stocks retreated 1.5%. Energy stocks edged 0.2% higher after Brent crude futures climbed $4.46 overnight. Santos and Woodside advanced more than 0.4% each. Among individual stocks, Insurance Australia fell as much as 1.6% 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%, 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% 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% lower at 13,039.86 points.
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