Australian shares are sharply lower in afternoon trade, with the S&P/ASX 200 down 1.6% to 8736.4 at 1pm AEST, as renewed clashes between US and Iranian forces lift oil prices and weigh on global risk sentiment. Brent crude rises 1.5% to above US$101 a barrel after reports of fresh military activity around the Strait of Hormuz, clouding expectations for a near-term peace agreement. Ten of the 11 sectors are trading lower, putting the market on track for its largest one-day decline since March.
Financials are leading losses, with the major banks weaker and Westpac falling after trading ex-dividend. Macquarie also declines despite reporting a stronger-than-expected full-year result, including a 30% rise in annual profit. Materials stocks are under pressure, with BHP, Orica and BlueScope Steel lower, while energy stocks also weaken despite the rebound in crude prices. Communication services is the only sector higher, supported by gains in News Corp after stronger-than-expected quarterly earnings.
Senetas highlights growth in sovereign encryption markets
Senetas Corporation (ASX: SEN) said demand for sovereign and quantum-resistant encryption solutions had accelerated as governments and critical infrastructure operators increased cybersecurity spending. The company pointed to growing momentum across Asia, the Middle East and South America, supported by its global distribution partnership with Thales. The cybersecurity group recently completed a US$1.7 million sale of its CN7000 encryption platform to a South American government agency, marking its first major contract in the region. Senetas said the deal was expected to contribute up to A$1.4 million in profit before tax in FY26, alongside recurring maintenance revenue over the next four years. The company ended early May with consolidated cash of approximately A$20.9 million and a minority investment in Menlo Security valued at about A$19.5 million.
SKS Technologies secures $22 million Docklands headquarters contract
SKS Technologies Group (ASX: SKS) secured a $22 million contract to deliver integrated electrical technology systems for a major retailer’s new headquarters in Melbourne’s Docklands precinct. The project was awarded by Buildcorp Group and is scheduled for completion in the first quarter of 2028. The contract expanded SKS Technologies’ order book to $355 million, with around $270 million extending beyond the traditional 12-month horizon into the second half of FY27. The company said its pipeline of work under tender had surged to $1.25 billion since February, driven largely by growing demand in the data centre sector.
Swift TV receives Netflix approval following certification process
Swift TV (ASX: STV) received final approval from Netflix for integration of the streaming platform into its enterprise television system following a multi-year certification process involving Google and Netflix. The company said it was currently the only enterprise connective TV product in Australia operating within Google’s enterprise operator framework. The integration allowed enterprise customers across sectors including mining, aged care and hospitality to offer direct Netflix access while maintaining operational controls such as secure logins, auto logout and emergency messaging capabilities. Swift said the approval strengthened its competitive positioning as demand grew for consumer-grade streaming services within managed accommodation environments.
X2M signs smart community partnership targeting recurring revenue
X2M Connect (ASX: X2M) signed a non-binding agreement with Mawson Business Advisory to develop an AI-enabled smart community platform combining private 5G infrastructure, utility management and estate operations services. The Integrated Smart Community Offering was designed to replace multiple vendor relationships with a single managed platform under 10-year agreements. The company said the partnership targeted Australia’s retirement village and land lease sectors, which together represented thousands of communities and hundreds of thousands of residents. X2M expected the agreement to accelerate growth in its Australian pipeline, which already included around 5,800 lots across existing binding and non-binding agreements valued at an estimated $11.8 million.
