Market Wrap / Hormuz headache

The Australian share market buckled on Wednesday, under pressure from renewed conflict in the Middle East and a global sell-off in chip stocks, while a strike at BHP's Port Hedland facility weighed on the Big Australian.

The S&P/ASX200 index lost 0.2% to close at 8,785 points.

The energy sector rose as oil prices spiked after the US launched retaliatory strikes against Iran for attacks on tankers in the Strait of Hormuz. Santos led the gains, rising 6.2%, while the coal miners also benefited, with Yancoal up 3.8%.

However, base and precious metals fell sharply, which weighed on the broader materials sector. BHP fell 2.9% as unions launched industrial action over pay at its Pilbara operations.

Technology was the worst performing sector, led by losses in WiseTech which unwound its recent gains.

Telstra attracted the ire of most Australians as a nationwide outage disrupted communications, transport and payment systems. Its stock fell close to 3% as it tried to restore services.

ResMed finished 0.3% lower as it agreed to sell its MatrixCare software business more than $700 million.

Adairs fell 2.2% as it warned of an expected $43 million loss for the 2026 fiscal year.

And across the ditch, the RBNZ lifted interest rates by 0.25 percentage points to 2.5% in an effort to stem inflationary pressures.