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Chapter 1: What is the main topic discussed in this episode?
a listener production.
The Aussie market eases slightly this afternoon on track for a third straight decline. Which stocks were among the best and worst performers on Monday and what's ahead this week which could move markets? Good afternoon, I'm Steve Daglian. It's Monday the 22nd of June. Welcome to the CommSec Market Update. Today, the market seemed a little unsure which way to head.
Chapter 2: What were the key market movements on June 22?
It was a tad choppy. We're actually down as much as 0.4% right when the market opened this morning. And then we were up as much as a quarter of the percent about an hour and a half later. And from those levels, we've kind of fallen away from those heights.
Chapter 3: How are tech stocks impacting the Australian market?
So as I said, we're down slightly at the three straight days of declines should nothing improve in late trade. So we didn't get a lead in from Wall Street at all. The US bulls were shut on Friday for a holiday. And Friday, of course, did end up being our worst day here in Australia on our market in about a fortnight.
And that was partly because of the US central bank flagging the possibility of a rate hike later this year. I think one thing which moved markets today was the situation in the Middle East, which to say the least is very difficult to read and quite fast changing. And that could very well be something that we continue to say for the next couple of months. Just a quick refresher here.
Last week, there was a memorandum of understanding officially signed in Versailles near Paris that kicked off this important 60-day ceasefire window to negotiate a more robust deal. And it took about a day for tempest to flare. That created fresh uncertainty on the US-Iran peace talks front.
Iran announcing it had once again closed the Strait of Hormuz over the weekend because the US failed to meet certain commitments to stop fighting in Lebanon. And then threats were also made by President Trump. So these things certainly did not help markets. But what did was on Monday or today were reports of progress.
a joint statement from mediating nations, that's both Qatar and also Pakistan, said the US and Iran agree to a roadmap towards a final deal within the next two months. And that importantly, talks would continue for the rest of the week at a Swiss mountain resort. So this is something that's certainly helped markets perhaps just take the pain out a little from the losses. And
As far as what we saw across the sectors today, it was really a mixed bag. There were a few big movers, mostly to the downside. So tech stocks were down 4.2%. That was really due to one stock in particular, which we'll get to momentarily. But also some declines coming through from telcos, which were down more than one. Healthcare, last week's best performer, down about 1.3% as well.
And some modest declines coming through from energy and mining sectors, both of which were a little on the volatile front today. partly because of what we've been seeing out of the Middle East. So I'll touch on energy stocks because they're finished down in the order of around 0.4%, or that's what it looks like they will. They were down as much as 1.1% at one stage, and they were up almost 1%.
at the best levels. And again, as I said, the driver has been the Middle East. So essentially, oil prices have been lifting when there are signs that peace talks are at risks of being delayed and things like the Strait of Hormuz being closed or threatened to be closed.
And then on the flip side, oil prices and energy stocks have been falling on news of progress actually being made because that opens up the prospect of more oil flowing around that part of the world. So at the moment, oil prices have fallen by around 2%, and that's the weight on that sector.
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Chapter 4: What geopolitical factors are influencing the market today?
And it follows reports of an investigation being launched by the Australian Federal Police into the company. The logistics company has been one of the main weights on our tech sector for quite some time now, considering that it was easily the largest stock in that space not long ago, but now it's dropped to third place behind the likes of Xero and NextDC.
Another underperformer today has been Ingham's ING, which is down by 4.8%. It was down more than 12 earlier. And this is after announcing a a full lockdown across its Western Australian farms and processing operations. This was seen as a precautionary measure following the detection of some avian influenza in two wild birds in the state. And also Metcash is down today as well by close to 2%.
Now, it released its annual results today. Most companies do that in August, but it has a a different reporting window. So this is for the 12 months to the end of April. And basically Metcash said that sales growth was particularly weak last month, which are blamed on a number of things, but softer consumer confidence, the geopolitical uncertainty, cost of living pressures.
It did say that it's noticed a pretty solid and encouraging rebound in June. but the stock still fell back today. And another stock I'll mention is Karun Gas, K-A-R. It's down 3.1%. Now, this is the company which explores for oil and gas in the Americas. It shed close to a third of its market value last week as well. And this was after warning
of some operational issues at the same time it was hit by the lower oil prices. So energy stocks just broadly were down last week by more than 7%. So it was actually the second worst weekly performance for energy overall in 2026. So let's take a look forward from here. A few key things to be on the lookout for. One is today, there's actually a quarterly rebalance for the ASX 200.
Happens every three months. Staten and Paws looks at all the stocks that are on the ASX 200 and some other indices as well, and it decides whether or not it needs to make some adjustments due to things like size or demand. share prices and how actively the shares are traded. So there are five stocks being added today, five stocks being removed.
Those being added, Elevra Lithium, Electro-Optic Systems, Firefly Metals and Kingsgate, and those being removed, Guzmini Gomez, IDP Education, Sightminder, Templin Webster and Web Travel Group. I forgot one other stock to add there is Minerals 260 Limited. So We'll wait and see how they perform.
But certainly the ones being removed have been underperformers on the market, and they've fallen between 10% and 60% since the start of this year. Now, this week locally, there'll be eyes on two things, mainly an update on inflation in May. That's going to be out on Wednesday, 11.30am Sydney time. And then a day later on Thursday, at the same time, we've got data on jobs growth.
That's for the month of May. Two very important considerations for the Reserve Bank, which meets roughly every six to eight weeks at the moment. It won't meet now for another seven weeks, but it is certainly something that will get a bit of attention from economists and analysts alike. We also get some important inflation data out of the United States as well,
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