Market Wrap / CSL craters

The local sharemarket started the new trading week on the backfoot, after US President Donald Trump rejected Iran’s response to a proposed peace deal, reigniting geopolitical fears and lifting oil volatility.

The S&P/ASX 200 closed lower by 0.5% to 8,701 points Monday, extending Friday’s 1.5% fall as investors rotated into defensive positions.

Healthcare heavyweight CSL was the clear standout loser, plunging more than 20% to its lowest level since 2016. The biotech giant slashed its FY26 earnings outlook and flagged around US$5 billion in non-cash impairments over the next two years, sending shockwaves through the health sector. The sell-off dragged the ASX health care index down as much as 9% during the day’s trade, making it the worst-performing sector of the session.

Financials also came under pressure, with the major banks and broader financial index down around 0.9%.

Energy stocks edged higher, up 1.3%, supported by a rise in oil prices on fears that prolonged geopolitical instability could tighten global supply. Heavyweights including Woodside Energy and Santos posted gains.

The mining sector also finished in the green, with BHP and Rio Tinto both advancing as commodity prices held firm.

Elsewhere, oOhmedia! shares rose 7% following an unsolicited $1.45 per share cash offer from I Squared Capital. Both Dyno Nobel and Metcash were boosted by trading updates, while Inghams rose an impressive 7.4% after reaffirming its FY guidance. 

Tonight, US existing home sales data is due.