ASX falls as oil and bond yields climb

The ASX 200 fell 0.8% this week, a fourth straight weekly decline, as oil pushed back above US$105 a barrel after Iranian-aligned Houthi forces attacked Saudi Aramco facilities in the Red Sea. The oil spike deepened a global bond sell-off, sending the US 10-year Treasury yield to 5.2%, its highest since 2007. When safe government bonds pay that much, shares look less attractive by comparison. This conflict could expand beyond the Persian Gulf and has ultimately kept investors cautious.  

The week’s best performers 

Electro Optic Systems (ASX:EOS) +9.48%

Defence technology company Electro Optic Systems rose 9.48% with no price-sensitive announcement behind the move. Instead, Vanguard appeared as a substantial holder, meaning it now owns at least 5% of the company, while conflicts in Europe and the Middle East have kept demand high for its counter-drone and laser systems. EOS has a much bigger order book to show for it, but an order book is contracted work, not revenue yet. Whether the rally holds depends on EOS building and delivering on time, all while it's still integrating its MARSS acquisition. 

Ramelius Resources (ASX:RMS) +8.10%

Gold miner Ramelius Resources rose 8.10% after unveiling a fully funded plan to lift gold output 205% by FY30. Next year's production guidance actually came in below analyst expectations, but the market cared more about cost. Its all-in sustaining cost, basically what it costs to produce each ounce, landed ~10% below estimates, meaning fatter margins on every ounce sold. With over $1bn in cash, gold and investments and no net debt, Ramelius won't need to raise money to fund it. The catch is its $1.5bn FY30 free cash flow figure assumes $5,500 an ounce gold, and Mt Magnet's costs have already blown out 26% once. 

Lovisa (ASX:LOV) +7.60%

Fast-fashion jewellery retailer Lovisa rose 7.60%, though there was no company announcement to explain it. It looks more like a bounce than anything else, with the stock still down 40.48% over the past year. The business itself is still growing, finishing the first half with 1,095 stores after opening 85 new ones, on $500.7m in revenue. New stores have been Lovisa's growth engine, so the next result needs to show they're actually earning their keep, or this week's gain won't last long. 

This week's worst performers

Tuas (ASX:TUA) -21.24%

Singapore mobile and broadband provider Tuas fell 21.24% despite an FY26 result that beat Morgan Stanley's estimates, with underlying profit up 329% to S$29.6m. The problem was what went unsaid. Its $1.59bn bid for M1 lapsed in May after Singapore's regulator began investigating unauthorised spectrum use by its subsidiary, and the chairman gave no update beyond awaiting a formal decision. Until that lands, investors are guessing at the penalty. Tuas is also sitting on S$498.8m in cash with no plan for it, most of it raised at $5.51 a share for a stock now trading below $2. 

Nine Entertainment (ASX:NEC) -14.38%

Nine Entertainment, the owner of Stan, 9Now and the Australian Financial Review (AFR), fell 14.38%, hitting a 12-month low of 66 cents on Thursday without any announcement to the ASX. The likely cause is two senior exits. Amanda Laing, who ran streaming and broadcast, is leaving after 18 months, while AFR editor-in-chief James Chessell is joining Joe Aston's start-up Rampart. Losing the editor of your flagship masthead to a former AFR journalist's rival isn't a great look. It comes despite a solid FY26 with net profit up 11%, so the question is whether the leadership churn gets in the way of FY27's promised growth. 

Perpetual (ASX:PPT) -14.23%

Perpetual, the asset manager and corporate trustee, fell 14.23% after its board rejected EQT's $22.50 a share best and final offer, ending talks. When a takeover bid disappears, the share price loses the premium investors had built in expecting a deal, and falls back toward where it would trade on its own. The board now has to prove its standalone plan, built around selling its Wealth Management arm and moving to net cash, is worth more than EQT's price. More on that in Deals Down Under below.