Australian shares slide as banks, CSL drag; US-Iran tensions hit risk appetite
- The S&P/ASX 200 index ended 0.5% lower at 8,701.8
Australian stocks fell on Monday, pressured by financials and healthcare firms, with CSL slumping to a near-decade low after cutting its earnings outlook, while concerns over a deadlock in U.S.-Iran negotiations dampened investor appetite for risk.
The S&P/ASX 200 index ended 0.5% lower at 8,701.8.
Biotech darling CSL tumbled 16% after it slashed its full-year 2026 outlook and flagged a $5 billion impairment. The stock dragged the healthcare index 6.5% lower to an over eight-year low.
However, the stock could begin to appeal to long-term investors at these levels if management succeeds in steadying the business, said Tim Waterer, chief market analyst at KCM Trade.
“For the broader healthcare sector, it serves as a reminder that not all companies are immune to rising costs and demand shifts, though quality names with stronger pricing power should fare better.”
Adding to caution, comments from U.S. President Donald Trump rejecting Iran’s proposal for talks stirred fresh worries of a prolonged geopolitical standoff, pushing oil prices higher.
Energy stocks in Sydney rose 1.1%, with oil major Woodside rising 1.5%.
Financials dropped 0.8%, with Waterer attributing the drop to expectations of a higher-for-longer interest rate and fears of rising bad debts. Three of the Big Four banks lost between 0.4% and 2.4%.
Attention now shifts to Tuesday’s federal budget, with investors seeking relief on living costs and housing.
A disciplined budget could give the bourse a short-term sentiment boost, Waterer said, adding that an overly stimulatory approach could also risk reviving rate-hike concerns.
Australia will phase in cuts to capital gains tax discounts, giving property investors extra time to lock in existing tax benefits, the AFR reported.
Real estate stocks closed 0.3% higher.
Miners advanced 0.3% on firmer iron ore and copper prices, with BHP and Rio Tinto up 0.7% and 0.6%, respectively.
New Zealand’s benchmark S&P/NZX 50 index rose 0.3% to 13,210.48 points.
Comments