Business Recorder
Australian shares fell on Monday after renewed strain between the United States and Iran dimmed hopes for a peace deal, while National Australia Bank slid on forecast of a A$706 million credit impairment hit due to the conflict. The US on Sunday said it had seized an Iranian cargo ship that tried to run its blockade and Iran said it would retaliate, raising the possibility that the ceasefire between the two countries might not last for even the two days it is set to remain in force. The S&P/ASX 200 index fell 0.4% to 8,912.6 by 0024 GMT. The benchmark fell marginally on Friday. National Australia Bank slid as much as 4.3% after the top business lender said it expects to incur credit impairment charges of around A$706 million for the first half, driven by market volatility during the war. NAB’s drop weighed on the financials sub-index, which was down 0.5%. The rest of the ‘big four’ lenders followed, shedding between 0.5% and 0.8%. Meanwhile, fuel retailer Viva Energy plunged as much as 9.5% after trading in shares resumed following a major fire at its Geelong Refinery, one of Australia’s two refineries. The company expects the refinery to be producing diesel and jet fuel at around 80% of capacity and petrol at around 60% in the short term. Viva dragged the energy sub-index, which fell 2.1%, with oil and gas producer Woodside Energy down 1%. Mining stocks dropped 1.1%, with mining major BHP slipping 0.8%, while Anglo Australian miner Rio Tinto shed 1.4%. Both miners will release their quarterly production updates later this week. Meanwhile, shares of Monash IVF plunged as much as 11.1% after rejecting a second takeover proposal from a consortium that valued the fertility services provider at A$350.7 million ($250.43 million).
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