Index Update: The Australian sharemarket ended Wednesday in negative territory as widespread selling weighed on the benchmark. The S&P/ASX 200 fell 41.20 points, or 0.45%, to close at 9,209.40. The index is now virtually unchanged over the past five sessions and remains 0.94% below its 52-week high.

Selling was broad-based, with nine of the 11 sectors finishing lower. A-REITs led the declines, falling 1.02%, followed by Consumer Discretionary at 0.81%, Telecommunications Services at 0.79% and Consumer Staples at 0.76%. Industrials declined 0.68%, while Financials eased 0.59%.

Utilities stood out against the broader weakness, climbing 2.64% on Wednesday and extending its five-day gain to 2.55%. Information Technology also managed a modest 0.16% rise, while Materials slipped 0.19% and Energy declined 0.42%.

Macro Update: Shipping traffic through the Strait of Hormuz fell sharply on Tuesday as vessel owners continued to avoid the key waterway amid escalating Middle East tensions. According to media reports, data showed just eight vessels in transit, the lowest daily count since August 5 and below the 10-day average of around 12. Only one vessel exited the strait, while seven entered via the Iranian route. Separate LSEG data recorded 11 transits, down from 14 a day earlier. Traffic remains well below pre-conflict levels of roughly 130 to 140 vessels a day.

Top Market Movers: Codan Limited (ASX:CDA) led the gainers, rising 9.30% to AUD 44.54, followed by Alcoa Corporation (ASX:AAI), which advanced 7.88% to AUD 78.97. Electro Optic Systems Holdings Limited (ASX:EOS) gained 7.38% to AUD 8.59. Among the decliners, SEEK Limited (ASX:SEK) fell 14.31% to AUD 13.77, Premier Investments Limited (ASX:PMV) dropped 11.01% to AUD 11.96, while Super Retail Group Limited (ASX:SUL) declined 5.48% to AUD 13.11.

Commodity Update: The dollar traded sideways in early Asian dealings as markets awaited fresh Inflation data. Gold rose 0.39% to USD 4,460.40, while silver gained 0.95% to USD 65.55 and copper edged 0.09% higher to USD 14,168.50. Brent Crude oil advanced 0.70% to USD 89.55, extending recent gains as tensions surrounding the Strait of Hormuz persisted. Renewed Houthi attacks on shipping in the Red Sea further increased concerns over prolonged oil Supply disruptions across West Asia.

Our Stance: The S&P/ASX 200 ended Wednesday 0.45% lower at 9,209.40 as selling spread across nine of 11 sectors, led by A-REITs and Consumer Discretionary. Utilities bucked the trend with a 2.64% gain, while Codan, Alcoa and Electro Optic Systems led individual advances. Middle East tensions remained a key macro concern as Strait of Hormuz traffic fell sharply and oil prices moved higher. Gold, silver and copper also edged up. With the index near recent highs but geopolitical risks still elevated, market sentiment may remain cautious, particularly if shipping disruptions continue to support energy prices.

On the technical front, the S&P/ASX 200 Index declined 41.20 points in the latest trading session, forming a bearish candlestick pattern. Despite the pullback, the broader technical structure remains constructive, with momentum indicators continuing to support the prevailing uptrend and suggesting that buyers may step in at lower levels. Immediate support is positioned near 9,140. As long as the index holds above this level, the bullish outlook remains intact, increasing the potential for a recovery towards recent highs. A decisive breakout above the recent swing high near 9,250 would further strengthen the bullish setup and could pave the way towards the next resistance level around 9,320 in the coming sessions.