Australia shares log best week since late 2022 on Iran truce, but caution lingers

Reuters04-10 14:52
Australia shares log best week since late 2022 on Iran truce, but caution lingers

Updates to market close

ASX200 notches best week since Oct 2022

Banks end at pre-war levels

Energy stocks snap 8-week run

NZ50 up more than 2% for the week

By Nikita Maria Jino

April 10 (Reuters) - Australian shares fell on Friday but logged their best weekly gain in more than three years as investors bought equities after a U.S.-Iran ceasefire, though doubts over its durability tempered risk sentiment.

The S&P/ASX 200 index .AXJO slipped 12.6 points to 8,960.60, with volumes below the 30-day average, LSEG data showed.

For the week, the benchmark advanced 4.4%, its best showing since early October 2022, largely driven by sharp gains in heavyweight banks and miners of up to 7%.

"Sentiment is cautious but constructive. The 4% weekly gain reflects relief," said Hayden Beamish, portfolio manager and CIO at Endeavor Asset Management.

However, investors remain risk-averse on concerns over the longevity of the ceasefire as Washington accused Tehran of breaching promises on the Strait of Hormuz and Iran cited Israel's strikes on Lebanon as a major point of contention. MKTS/GLOB

"Volumes below the 30-day average tell you most managers are sitting on their hands waiting for clarity on the U.S.-Israel talks and broader Middle East trajectory," Beamish added.

"Nobody wants to be a hero into a weekend with that backdrop."

Miners .AXMM were the major drag, slipping 0.6% on the day, with BHP BHP.AX and Fortescue FMG.AX falling 1.1% and 1.3%, respectively. However, the sub-index posted a 6.5% gain for the week.

Financials .AXFJ edged up, with all "Big Four" banks finishing higher, lifting the sector 6.6% for the week.

Energy stocks .AXEJ fell 0.5%, with Santos STO.AX down 0.6%, dragging the sector nearly 4% lower for the week and snapping an eight-week winning streak.

The healthcare .AXHJ and industrials .AXNJ sub-indexes slipped 0.4% each.

Across the Tasman Sea, New Zealand's S&P/NZX 50 index .NZ50 finished down 0.7% at 13.181.44. The benchmark, however, gained 2.2% for the week, snapping five weeks of losses.

(Reporting by Nikita Maria Jino in Bengaluru; Editing by Nivedita Bhattacharjee)

((Nikita.Jino@thomsonreuters.com;))

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