The Australian sharemarket was lower on Friday afternoon, with investors digesting a week dominated by shifting interest rate expectations and corporate earnings. The S&P/ASX 200 was down 0.3% near midday, leaving the index on track for a 0.9% weekly decline and its second straight week of losses. Financial stocks weighed heavily after Macquarie reported weaker-than-expected half-year earnings, while Commonwealth Bank also eased. National Australia Bank bucked the trend with modest gains, helping to offset some of the losses. Technology stocks mirrored declines on the Nasdaq, while materials were mixed as gold miners gained on stronger bullion prices but iron ore producers slipped.
Thursday’s session had briefly interrupted the market’s losing streak as investors rotated into materials on the back of a rebound in gold. Major miners rose despite continued weakness in iron ore, while a slump in National Australia Bank’s earnings pulled bank shares lower. Earlier in the week, sentiment was shaped by the Reserve Bank’s decision to keep the cash rate on hold at 3.6% and comments from Governor Michele Bullock warning that inflation could remain elevated for longer than expected. That message dampened hopes of rate cuts this cycle and prompted investors to adopt a more defensive stance.
The week opened with modest gains on Monday, led by the big banks after Westpac’s annual profit report boosted confidence across the financial sector. However, Tuesday’s cautious RBA tone and weaker commodities quickly reversed momentum, dragging the index to a six-week low. Mining stocks were pressured midweek by concerns that China’s Simandou iron ore project could disrupt global supply, while technology shares fluctuated in line with Wall Street moves. By Friday, the market was struggling to regain traction, with traders awaiting fresh catalysts to close out a subdued week for equities.
In Friday’s company news,
Etherstack secures $2.5m Australian Defence contract
Etherstack (ASX:ESK) announced a $2.5m defence communications contract with the Commonwealth of Australia. The project strengthens Etherstack’s position as a sovereign supplier in secure communications and brings its total defence-related business with the government to $15m since 2021. Revenue will be fully recognised before the end of 2026, with updated financial guidance expected next week.
Lithium Universe signs Taiwan deal to extract silver from solar waste
Lithium Universe (ASX:LU7) signed a memorandum of understanding with Taiwan’s RePV Tech to jointly test recycled silicon wafers for silver extraction using LU7’s proprietary technologies. The trials, to be conducted at Macquarie University, aim to recover high-purity “Britannia-grade” silver from photovoltaic waste. The collaboration advances circular economy initiatives and could unlock significant value from global solar recycling.
QMines identifies multiple gold targets at Mount Mackenzie
QMines (ASX:QML) announced the identification of five new near-surface gold targets at its Mount Mackenzie Project in Queensland. The findings stem from reprocessed magnetic data, revealing a 1.5km magnetite-destruction corridor linked to gold-silver mineralisation. RC drilling is now underway to test these new targets, potentially expanding the company’s resource base within the broader Connors–Auburn structural corridor.
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Source: Finance News Network
