If you checked your superannuation or share portfolio on Monday and felt a little queasy, you’re not alone.
The Australian sharemarket took a tumble, with the ASX200 falling to a three-week low as fresh tensions between Israel and Iran sent shockwaves through global markets.
But before you start stuffing cash under the mattress, let’s unpack what’s really going on and what the experts are saying about the road ahead.
A volatile day on the markets
The ASX200 closed down 30.6 points, or 0.36 per cent, at 8,474.9—its lowest level since early June.
The broader All Ordinaries also slipped, losing 35.5 points (0.41 per cent) to finish at 8,688.
The Australian dollar wasn’t immune either, dropping to United States (US) 64.18c as investors sought safer havens.
What’s behind the jitters? Over the weekend, the US launched airstrikes on three Iranian nuclear sites using B-2 stealth bombers, stoking fears of a wider conflict in the Middle East.
With oil prices already on edge, any escalation could send energy costs soaring—bad news for everything from petrol prices to airline tickets.
Tony Sycamore, market analyst at IG, summed up the mood: ‘You would have been forgiven for thinking we would have a really volatile session on Monday. Whether it’s just caution or because we have seen nothing from Iran just yet to shake things up further… we are in a hold until we know more.’
Winners and losers: The sectors in focus
Eight out of 11 sectors finished in the red, with financials and energy stocks leading the way.
But it wasn’t all doom and gloom—Commonwealth Bank (CBA) bucked the trend, hitting a record high of $184.41 before closing up one per cent at $184.35.
As Sycamore put it, ‘Commonwealth Bank remains a juggernaut that steamrollers people. I don’t know where it stops and when it stops but it’s the best of the banks and that is the sector where people want to be.’
Other major banks had a mixed day: Westpac edged up 0.63 per cent, while NAB and ANZ slipped slightly.
Energy stocks, which often benefit from higher oil prices, started strong but pared back gains as the day wore on.
Takeover target Santos closed one per cent higher, Woodside Energy was flat, and Ampol gained 0.47 per cent.
On the flip side, iron ore miners continued to struggle. BHP dropped 1.57 per cent, Rio Tinto fell 0.33 per cent, and Fortescue Metals lost 1.02 per cent.
With China’s demand for iron ore in question and global uncertainty rising, the sector faces headwinds.
Company news: Highs, lows, and takeovers
Qantas shares fell 1.85 per cent to $10.08, reflecting concerns about rising fuel costs.
Meanwhile, The Reject Shop’s shareholders overwhelmingly approved a $259 million takeover by Canadian discount giant Dollarama, marking a new chapter for the homegrown retailer.
Not all news was positive: Adairs, the homewares and furniture retailer, plunged 20.5 per cent after warning that full-year earnings would fall short of last year’s results.
It’s a reminder that even outside the headlines, individual companies can face their own challenges.
Looking ahead: What should investors watch?
The situation in the Middle East is fluid, and markets will be watching closely for any signs of escalation or de-escalation.
Oil prices are likely to remain volatile, which could impact everything from supermarket prices to your next holiday.
For now, the best advice is to stay informed, avoid knee-jerk reactions, and remember that volatility is a normal part of investing.
If you’re unsure about your portfolio, consider speaking to a financial adviser who can help you navigate uncertain times.
Have your say
Market fluctuations can be stressful, but understanding the bigger picture helps us make better decisions.
Being informed and prepared is key to managing your investments wisely through uncertain times.
How are you feeling about the latest market moves? Are you making any changes to your investments, or riding out the storm? Have you seen your super balance take a hit?
Share your thoughts and experiences in the comments below—your insights could help others in our community make sense of these turbulent times.
Also read: Australia backs US strike as Iran’s nuclear threat grows
