Australia's S&P/ASX 200 index edged lower on Tuesday, ending five consecutive months of gains as rising oil prices and concerns over potential interest rate increases weighed on investor sentiment. The benchmark index fell 9.3 points, or 0.1 percent, to close at 9,066.7, after earlier slipping as much as 52 points. The broader All Ordinaries index also declined by 10.5 points, or 0.11 percent, settling at 9,260.9.
Among sectors, seven of eleven ended lower, with consumer discretionary and technology stocks notably weaker. Retailers faced pronounced selling pressure, led by Wesfarmers, which dropped 2.97 percent to $77.08. Harvey Norman shares fell 2.57 percent to $41.70, while JB Hi-Fi declined 0.49 percent to $66.57. Major supermarket chains also moved lower, with Woolworths down 2.43 percent to $39.33 and Coles retreating 1.5 percent to $23.68.
The banking sector displayed mixed results. Commonwealth Bank shares slipped 0.47 percent to $159.15, National Australia Bank fell 0.34 percent to $38.50, and Westpac lost 0.55 percent, closing at $34.36. In contrast, ANZ Bank gained 0.38 percent, ending the day at $37.34.
Energy stocks posted gains, supported by renewed geopolitical tensions in the Middle East. Woodside Petroleum rose 0.86 percent to $32.70, Santos increased 1.72 percent to $8.28, and Ampol added 1.72 percent, closing at $43.80. The rally followed recent clashes between the United States and Iran in the Strait of Hormuz, a strategic waterway through which approximately 20 percent of the world’s oil and gas passes. Missile and drone attacks targeted Iranian rocket launchers on an island in the strait, pushing Brent crude oil prices as high as $91 per barrel.
US President Donald Trump reported that the US Navy had secured passage for multiple vessels through the Strait of Hormuz, averaging around 30 ships per night, underscoring Washington’s efforts to maintain control over the crucial shipping lane. Trump indicated plans for a strong response to Iran’s retaliatory strikes, stating, "We’re going to hit them hard."
In corporate news, Collins Foods, the operator of KFC outlets in Australia, saw its shares rise 2.21 percent to $8.33 after announcing record full-year revenues of $1.592 billion and a 13 percent increase in net profit to $61.4 million. The company reported a 6.4 percent increase in total sales for the 17 weeks since May, alongside a 3.4 percent rise in same-store sales.
CSL, a global leader in vaccines and plasma products, gained 0.43 percent to $172.31. The pharmaceutical company recently reached an agreement with the US government aimed at reducing medicine costs, and also entered an ownership deal with the US Department of Commerce, committing $1.5 billion to expand its manufacturing facility in Kankakee, Illinois.
Meanwhile, Pinnacle Investment Management shares tumbled 10.1 percent to $15.16 after it announced the closure of Platypus Asset Management and faced increasing scrutiny over its involvement in private credit.