Australian shares secure biggest weekly gain since 2022 despite market dip

The Australian sharemarket has managed to secure its biggest weekly gain since 2022 – despite a fall on Friday’s trading as traders remaining on edge as the Strait of Hormuz stays closed.

The ASX 200 index dropped 12.60 points, or 0.14 per cent, to 8,960.60 while the broader All Ordinaries also fell 0.14 points to 9, 155.80.

While shares have fallen, the benchmark remains on track to rise 4.2 per cent for the week, just about 250 points below its 9202 record high.

April has had a 5.55 per cent gain, recovering 70 per cent of the losses sustained during March, according to market analyst Tony Sycamore.

The day ended with only three of the 11 sectors in the green, led by Real Estate followed by Utilities and Financials.

The day’s worst performer, was Information Technology, with WiseTech Global down 2.6 per cent to $37.61 and Xero falling by 2.7 per cent to $71.46.

Life360 also fell 3.3 per cent to $19.48 after announcing job cuts to restructure for a workforce shaped by AI.

Real estate outperformed the 11 sectors, jumping 0.88 per cent as Vicinit Centres rose 3.2 per cent to $2.56.

The big four banks had mixed results, with NAB stacking 0.31 per cent following its second fixed-rate hike in two weeks while Commonwealth Bank rose 0.47 per cent.

On the other hand, Westpac gained 0.28 per cent as it positioned itself as the lowest fixed-rate provider and ANZ soared 0.23 per cent.

Geopolitical tensions continue to the primary driver of volatility.

While a two-week ceasefire between the US and Iran was announced on April 8, reports of continued strikes in Lebanon and the continued blockade of the Strait of Hormuz have kept markets cautious.

Energy stocks have been weakened by uncertainty, with Whitehaven Coal down 3.2 per cent to $8.12 and Woodside Energy stumbling 0.2 per cent to $33.29.

The threat of a fragile ceasefire has continued to push oil prices higher, with Brent Crude edged up by 0.8 per cent to US$96.72 a barrel.

“Oil initially fell sharply on the ceasefire announcement as traders priced out worst-case supply disruption but has since rebounded as doubts over the agreement’s longevity have grown,” market analyst Daniela Hathorn said.

Meanwhile, Gold has continued its steady climb up 0.06 per cent to US$4,766.17 an ounce.

The Australian dollar is currently buying 70.86 US cents.