Market Wrap / ceasefire surge

The Australian sharemarket posted its biggest gain in a year Wednesday, with investor sentiment boosted by a two week ceasefire announced between the US and Iran at the 11th hour.The reprieve came less than two hours before a deadline imposed by US President Trump which included a threat “a whole civilisation would die” if his demands to reopen the Strait of Hormuz were not met.

The S&P/ASX 200 jumped almost 3% on the open, before closing 2.6% higher, to finish the session at 8,951.8 points.

Oil prices plunged, falling back below US$100 a barrel amid the development, a move mirrored locally with the energy sector closing down 7.6%. Heavyweight Woodside Energy slid 10.5% while Santos fell 4.1%. 

A rally in gold helped producers recover some of the losses sustained during the conflict, with Bellevue Gold leading the ASX 200 higher, gaining 18.9%.

In company news, Flight Centre jumped 7.3% after announcing plans to sell its 47% stake in bicycle firm Pedal Group for $61.7 million.

Elsewhere, DroneShield chief executive Oleg Vornik stepped down as CEO, which along with a selloff in defence stocks, saw the share price tumble 13.5%. 

And Lovisa rose 12.2% on a broker upgrade from UBS.

Tonight, markets will continue to follow developments out of the US and Iran, while minutes from the Fed’s March meeting are also set to be released.