Aussie shares drop as ceasefire frays, CSL plunges
The local stock market tumbled after the United States rejected Iran’s latest peace proposal to end the Middle East war and a major decline in a leading biotech name weighed on the stock market.
The S&P/ASX200 index fell 42.6 points, or 0.49 percent, to 8,701.8 points on Monday, while the All Ordinaries index fell 38.1 points, or 0.42 percent, to 8,942.4 points.
EToro market analyst Josh Gilbert said that risk-off sentiment may prevail after US President Donald Trump criticized Iran’s offer to end the war, bringing new uncertainties to the markets at the beginning of the critical week.
“Trump calling the offer ‘completely unacceptable’ is exactly the kind of headline markets hate,” Mr. Gilbert said.
This week, investors will be watching for a highly anticipated summit between Trump and Chinese President Xi Jinping in Beijing and another round of U.S. inflation data.
Domestically, investors are awaiting details of Australia’s 2026/27 federal budget, which Finance Minister Jim Chalmers will announce on Tuesday night.
Seven of the ASX’s 11 sectors fell on Monday; consumer staples were essentially flat, while energy, materials and real estate were on the rise.
Health care made by far the biggest advance, falling 6.5 percent, with CSL falling 16.0 percent to $100.75, its lowest level in a decade, due to earnings downgrades and asset write-offs.
CSL shares are down 41.6 percent so far in 2026, on top of a 38.7 percent decline in 2025, and the company’s $16.4 billion acquisition of an iron deficiency business in Switzerland in August 2022 looks like a major strategic mistake.
In the financial sector, all major retail banks declined; ANZ fell 2.4 per cent to $35.90, Westpac fell 0.9 per cent to $37.12, NAB fell 0.4 per cent to $38.22 and CBA fell 1.1 per cent to $174.01.
The energy sector gained 1.1 per cent as Brent crude reached a five-day high of US$105 per barrel on renewed tensions in the Middle East; Woodside rose 1.5 percent and Karoon Energy rose 1.0 percent.
Uranium developers had a good day, with Paladin, Deep Yellow, Bannerman and Boss rising from 4.6 to 6.5 percent.
In the heavy materials sector, Dyno Nobel rose 6.6 percent to $3.54, a three-month high, after the explosives maker said it made a profit of $20 million in the first half, up from $7 million a year earlier.
Elsewhere in the sector, Rio Tinto rose 0.6 per cent to $179.79, while BHP and Fortescue rose 0.7 per cent to $58.33 and $21.42 respectively.
But gold miners retreated as the precious metal traded at $4,682 per ounce, down nearly $40 from Friday.
Northern Star lost 1.9 percent, Evolution lost 0.7 percent and Regis Resources lost 3.4 percent.
In consumer staples, Metcash rose 6.6 per cent to $2.92, a four-week high, after the IGA supplier said it expected to post underlying profits of between $268 million and $270 million.
“We delivered a solid result,” CEO Doug Jones said.
OOh!media rose 7.1 percent to $1.35 after the out-of-home advertising company received a second takeover bid from a private equity firm
Ingham’s price rose 7.4 percent to $1.82 after the poultry processor reaffirmed a target of $180 million to $200 million.
In currency terms, the Australian dollar remained at an almost four-year high against the US dollar, buying 72.38 US cents for 72.24 US cents at around 5pm on Friday.
ON ASX:
* S&P/ASX200 fell 42.6 points or 0.49 percent to 8,701.8 points
* More broadly, the All Ordinaries index fell 42.6 points, or 0.42 percent, to 8,942.4.
One Australian dollar is traded as follows:
*72.38 US cents from 72.24 US cents at 5pm (AEST) on Friday
* 113.67 JPY from 113.33 JPY
* 61.54 euro cents from 61.53 euro cents
* 53.25 British pence, from 53.19 British pence
* 121.70 New Zealand cents from 121.38 New Zealand cents
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