The Australian sharemarket is trading sharply lower in afternoon trade as investors assess escalating tensions in the Middle East and rising concerns about inflation linked to higher energy prices. The S&P/ASX 200 is down about 2 per cent, with all sectors in the red as broad selling spreads across the market. Oil prices remain elevated after earlier spikes tied to supply disruption fears around the Strait of Hormuz, while gold fell sharply overnight before stabilising, weighing on mining stocks.
Materials and banks are leading the decline, while property stocks are also weaker amid concerns interest rates could remain higher for longer. Endeavour Group is lower after reporting a drop in half-year net profit, while Treasury Wine Estates is higher after announcing its chief financial and strategy officer will retire later this year. AUB Group is weaker after completing a share purchase plan following its earlier institutional placement.
In other company news,
Island Pharmaceuticals (ASX: ILA) partners with US biodefence research institute
Island Pharmaceuticals (ASX: ILA) entered a Cooperative Research and Development Agreement with the US Army Medical Research Institute of Infectious Diseases and the Geneva Foundation to advance development of its antiviral drug Galidesivir. The collaboration will focus on generating data required for potential regulatory approval to treat Marburg Virus Disease under the US Food and Drug Administration’s Animal Rule pathway. The three-year agreement builds on earlier research conducted with the institute and strengthens Island’s position within the US biodefence ecosystem.
GenusPlus (ASX: GNP) to acquire Railtrain in rail infrastructure expansion
GenusPlus Group (ASX: GNP) entered a binding agreement to acquire national rail services provider Railtrain Holdings, expanding its capabilities in the rail infrastructure sector. Railtrain provides overhead wiring, maintenance, construction and signalling services across Western Australia, Queensland and New South Wales. The acquisition involves $36.5 million in upfront consideration, with additional earn-out payments tied to future earnings targets. Genus said the transaction will add scale, expand its geographic reach and strengthen its rail services offering.
Horizon Gold (ASX: HRN) raises $30m to accelerate Gum Creek development
Horizon Gold (ASX: HRN) secured firm commitments to raise $20 million through a placement and launched an entitlement offer to raise a further $10.2 million to accelerate development of the Gum Creek Gold Project in Western Australia. The funds will support completion of a feasibility study and an expanded exploration campaign, including an 80,000-metre drilling program. The project currently hosts a 2.3-million-ounce gold resource, with further exploration planned to grow the resource and advance the project toward development.
