After a poor performance last week, the ASX 200 continued dropping a further 2.6% for the week, making it the lowest weekly close since December. Driven by uncertainty surrounding the Middle East conflict, the sharemarket has wiped out $190bn in market value since the beginning of the war (February 28th).
The week’s best performers on the ASX 200 include:
Yancoal Australia Ltd. (ASX:YAL) +27.33%
Electro Optics Systems Holdings Limited (ASX:EOS) +18.47%
Lynas Rare Earths Limited (ASX:LYC) +12.93%
In contrast, the worst performers on the ASX 200:
IperionX Ltd. (ASX:IPX) -23.88%
Northern Star Resources Ltd (ASX:NST) -19.38%
Orica Limited (ASX:ORI) -14.72%
Yancoal (ASX:YAL), one of Australia’s largest coal producers and exporters, had an impressive week in the markets. Off the back Iran’s closure of the Strait of Hormuz, global producers have looked to coal to deal with supply shortages of oil and gas. As a result, the price of coal has increased 25% for the year, lifting coal producers such as Yancoal.
Both Electro Optics Systems (ASX:EOS) landed a huge US$45m order for their counter-drone systems used to strengthen defence systems, with an undisclosed country in the Middle East purchasing one of their systems. Amidst rare earth supply pressures from China, Lynas Rare Earths (ASX:LYC) secured a long-term supply deal with Japan Australia Rare Earths (JARE), backed by Japan’s government and industrial groups. Earnings certainty enticed investors this week, leading to a 12.93% increase in its share price.
While the coal and defence stocks had favourable weeks, other mining and materials-related stocks struggled. IperoniX (ASX:IPX), an American titanium metal and critical minerals company dropped a staggering 23.9% after heavy losses (US$34.77m) in their half-year results.
Northern Star Resources (ASX:NST) cut its expectations on their gold production for the year, with the gold miner estimating 1.5m ounces compared to its initial estimate of 1.85m ounces. Investors didn’t react well with Northern Star’s share price dropping 19.38%. Orica, a leading global manufacturer/supplier of explosives and blasting systems dropped due to a downturn in future short-term profits and potential future impacts from the Middle East.
