The financial impacts of the Middle East conflict spread to Australia with the ASX 200 falling 3.8% for the week, its largest drop since Trump’s “Liberation Day” tariffs in April last year. The severe drop erased all of February’s 3.7% gain, as supply concerns in global energy markets and rising geopolitical tensions pushed investors toward a more cautious stance.
The week’s best performers on the ASX 200 include:
Viva Energy Group Ltd. (ASX:VEA) +18.64%
DroneShield Limited (ASX:DRO) +12.43%
Wisetech Global Ltd. (ASX:WTC) +10.90%
In contrast, the worst performers on the ASX 200:
Deep Yellow Limited (ASX:DYL) -17.49%
Catalyst Metals Limited (ASX:CYL) -17.27%
Sandfire Resources Limited (ASX:SFR) -15.35%
The two best performers, Viva Energy and Droneshield were no surprise, with the Middle East conflict a catalyst for their surge. With oil prices climbing sharply, Viva Energy profited like most other energy stocks this week. Droneshield, an Australian defence technology company that specialises in counter-drone systems and electronic warfare solutions bounced 12.43%, as escelating geopolitical tensions raised defence spending around the world.
Miners led the fall this week with the top 3 losers representing uranium, gold and copper producers respectively. Deep Yellow’s drop was due to their poor half-year results reporting a A$7.78m loss, tripling its A$2.47m loss in the previous period.
Catalyst Metals and Sandfire Resources fell amidst the global commodity slump with gold and copper dropping along with other commodities such as silver and lithium.
Outside of the top 3 worst performers, Australia’s aviation sector also came under pressure after major airlines and airports suspended operations across parts of the Middle East. Australia’s Qantas tumbled 10.35% for the week. While Virgin slipped 7.64% and Flight Centre also fell 5.66%.
