Australian shares experienced a significant downturn as market losses since the start of the conflict approached $320 billion. The ASX dived 1.5 per cent near midday AEDT, edging closer to a correction, with losses nearing 10 per cent since the war began. Concerns over escalating tensions, particularly surrounding Iran, continue to weigh heavily on investor sentiment. Simultaneously, gold miners faced challenges amid rising interest rate bets. SGH recently announced a new CEO for Boral, a construction materials company that manufactures and supplies a range of building products. SGH is a diversified industrial group with operations across Australia, New Zealand and Asia.
Geopolitical tensions have been further heightened by threats exchanged between the US and Iran, stoking fears of further escalation. The Islamic Republic’s military has threatened to target “energy, IT and desalination infrastructure” operated by America and Israel in the Middle East. Amidst these threats, there is growing concern that Iran could destabilise markets this week, with one analyst suggesting that a 25 per cent market plunge is “definitely possible.”
Domestically, frustration is mounting in the Coles-Woolworths $1 billion underpayment case, with a judge criticising the supermarket giants’ lawyers for wasting time. In other corporate news, former Billabong executives are reportedly targeting Rip Curl, pitching a carve-up of KMD Brands. Meanwhile, an EY staffer was fined almost $6000 and had their membership suspended until 2027 for using a mobile phone during two accounting exams.
Energy security is also a key concern, with Australia potentially looking to exploit LNG ‘leverage’ to secure oil from Asia. The energy minister has indicated that fuel disruptions can be expected but stated that the government is not currently planning to invoke emergency rationing powers. Elsewhere, Qatar’s import terminals have significantly reduced their operations, raising concerns about potential supply shortages.
