Key Takeaways
- The S&P/ASX 200 Index (XJO) finished the session nearly flat, edging up just 0.03% to 8,808.50 as gains in the banking sector offset losses in technology and materials.
- Oil prices surged nearly 5% following U.S. airstrikes in Iran and retaliatory actions, driving a rotation into defensive sectors and energy stocks.
- The "Big Four" banks acted as a market anchor, with ANZ Group (ANZ) leading the group with a 0.90% gain to $36.38.
- Technology and Materials sectors were the primary laggards, falling 2.3% and 0.9% respectively as investors moved away from growth and cyclical assets.
The Australian sharemarket experienced a volatile start to the week on Monday, July 13, 2026, as the benchmark S&P/ASX 200 Index (XJO) struggled for direction. After an early climb to over 8,820 points, the index retreated to close at 8,808.50, gaining a marginal 2.50 points or 0.03%.
Market sentiment was heavily influenced by a sharp escalation in Middle East hostilities, which saw Brent crude prices jump toward US$80 per barrel. This geopolitical uncertainty triggered a sell-off in risk-sensitive sectors like technology while providing a tailwind for domestic energy producers.
Banking Sector Provides Stability
The financial sector served as the market's primary defense against broader declines. ANZ Group (ANZ) was the standout performer among the major lenders, rising 0.90% to $36.38. Other major banks followed suit, with Commonwealth Bank (CBA) up 0.49% to $169.69 and National Australia Bank (NAB) gaining 0.57% to $39.84.
Analysts noted that investors favored the liquidity and relative safety of large-cap financials as global uncertainty clouded the outlook for growth-oriented stocks. Westpac (WBC) also contributed to the positive momentum, finishing 0.42% higher at $36.70.
Energy and Materials Mixed Amid Crude Surge
The energy sector saw significant interest as oil prices reacted to strikes in the Strait of Hormuz. Woodside Energy (WDS) rose 0.65% to $29.24, while Ampol (ALD) surged 4.39% to hit a 52-week high of $36.83. Conversely, AGL Energy (AGL) bucked the trend, falling roughly 5% following an analyst downgrade.
The Materials sector faced headwinds, declining 0.91% overall. Heavyweights BHP Group (BHP) and Rio Tinto (RIO) both finished in the red, down 0.38% and 0.36% respectively. The pullback in mining reflected broader concerns regarding global industrial demand and a shift in risk appetite.
Technology and Healthcare Under Pressure
The Information Technology sector was the day's worst performer, tumbling 2.3%. This decline mirrored weakness in U.S. tech futures and profit-taking in AI-related stocks. Healthcare also struggled, led by a 1.29% drop in CSL Limited (CSL), which closed at $121.31.
Despite the muted headline result, individual movers included Silex Systems (SLX), which gained 9.4%, and Deep Yellow (DYL), up 7.4%, as uranium-related plays continued to attract speculative interest. Meanwhile, Austal (ASB) hit a 52-week low, falling 4.84% to $3.54.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.