SYDNEY, April 24, 2026, 17:25 AEST – Australian stocks extended their losing streak to four consecutive sessions on Friday, as persistent geopolitical tensions in the Middle East and elevated oil prices prompted a sector rotation ahead of next week's inflation data and the Reserve Bank of Australia's interest rate decision.
The S&P/ASX 200 edged down 6.9 points, or 0.1%, to close at 8,786.5, while the All Ordinaries index slipped 0.2% to 9,006.4. Over the past five trading days, the benchmark has shed 1.8%, reflecting growing unease among investors.
Crude oil prices remained elevated, with Brent crude trading near $105.48 a barrel late in Sydney and U.S. crude holding around $95.96. The ongoing gridlock in the Strait of Hormuz, through which approximately 20% of global oil flows, continued to stoke fuel-security concerns. On Wall Street, the S&P 500 fell 0.4%, and the Nasdaq shed 0.9% overnight, adding to the cautious tone.
Vishnu Varathan, head of macro strategy for APAC at Mizuho, cautioned against expecting a "linear de-escalation" in violence, oil prices, or volatility. "Investors are still positioning on the chance the crisis might resolve soon, but hardly anyone is relying on that outcome as their main scenario," he told Reuters.
Energy stocks stood out as beneficiaries of the oil price surge. Jimmy Tran, dealing manager at Moomoo, noted that "markets are pricing a meaningful supply risk premium." He added that if prices remain high, companies like Woodside, Santos, and Beach Energy could gain. The energy sector, along with utilities and consumer staples, saw steady gains as investors rotated into defensive names. In contrast, basic materials, industrials, and real estate lagged, bearing the brunt of the selloff.
In corporate news, Suncorp shares rallied 4.9% to A$17.12 after the insurer secured a five-year aggregate reinsurance cover worth A$800 million in annual protection, for a total of A$2.4 billion over five years. Acting chief executive Jeremy Robson said the new cover should deliver "reduced volatility in earnings." The company also forecast gross written premium growth of roughly 3% for fiscal 2026.
On the downside, IGO shares plunged 17.3% to A$7.06 after the company slashed its fiscal 2026 production forecast for Greenbushes spodumene to 1,375-1,425 kilotonnes, down from the earlier estimate of 1,500-1,650 kilotonnes. IGO also raised its unit cash-cost estimate. Despite the production cut, the company reported that its average realised spodumene price jumped to $1,668 a tonne—almost double the previous level—and Greenbushes posted a 75% EBITDA margin.
Overall market breadth was negative, with 609 stocks declining and 489 advancing, according to Investing.com. Among the top ASX 200 gainers were Summerset Group, Suncorp, and Austal, while IGO, EVT, and Contact Energy recorded the session's steepest losses.
Looking ahead, the market faces a binary risk. If tensions in the Middle East ease, oil prices could slide and energy stocks may cool off. Conversely, another fuel price jump—or a higher-than-expected March CPI reading due on April 29—would squeeze rate-sensitive areas like real estate, intensifying focus on the RBA's policy decision on May 5.
