Market Wrap / strait stress

The Australian sharemarket traded lower on Monday as investors weighed escalating tensions in the Middle East.

The S&P/ASX 200 closed relatively flat, up 0.02% to 8809 points, with weakness in technology and mining stocks outweighing gains in selected energy names.

Technology stocks led the declines, with Xero falling 4.4% after investors reacted to chief executive Sukhinder Singh Cassidy selling around $2.2 million worth of shares to meet personal tax obligations. WiseTech Global also lost 2% as the technology sector came under pressure.

Gold miners also fell as bullion prices fell more than 1%, as surging oil prices fuelled concerns that inflation could remain elevated and keep interest rates higher for longer. Northern Star Resources, Evolution Mining and St Barbara all traded lower, dragging the sector down.

Energy stocks outperformed the broader market as crude oil prices climbed on concerns about potential disruptions to global supply. Woodside Energy edged higher while Karoon Energy gained after restarting production at its PRA-2 well at the Baúna Project, although Santos traded slightly weaker.

Among individual companies, City Chic Collective surged 27.7% after delivering stronger-than-expected preliminary FY26 results, with sales improving and earnings nearly doubling from the previous year. Ampol also advanced after securing a new $400 million delayed-draw subordinated notes facility backed by KKR, while oOh!media rose as it continued takeover discussions with three private equity bidders. Clinuvel Pharmaceuticals gained following approval from Health Canada for its rare-disease treatment Scenesse.

Investors will continue to monitor developments in the Middle East, with oil prices and shipping activity through the Strait of Hormuz expected to remain key drivers of market sentiment.