Index Update: The Australian sharemarket edged lower on Monday, with the S&P/ASX 200 Index slipping 5.40 points to close at 8,791.30. Despite the modest decline, the benchmark has remained broadly unchanged over the past five trading sessions and on a year-to-date basis.

Sector performance was mixed, with six of the 11 sectors finishing lower. Energy was the standout performer, rising 1.80% during the session and extending its gain to 3.32% over the past five days. Consumer Staples (+0.43%), Telecommunication Services (+0.39%), Industrials (+0.16%) and Consumer Discretionary (+0.11%) also ended in positive territory. In contrast, Information Technology led sector losses, declining 1.55%, followed by Utilities (-0.63%), Health Care (-0.49%), Materials (-0.34%), A-REITs (-0.17%) and Financials (-0.08%).

Macro Update: The International Energy Agency (IEA) has cautioned that prolonged disruption to shipping through the Strait of Hormuz could begin affecting the global economy within weeks if normal transit is not restored. Escalating tensions in the Middle East have halted tanker movements following recent attacks on commercial vessels, renewed U.S. military action and tighter restrictions on Iranian oil exports. Oil prices have climbed about 13% since last Friday, while concerns over fuel supply, inflation and broader economic growth continue to weigh on global financial markets.

Top Market Movers: Among the top gainers, 4DMedical Limited (ASX:4DX) climbed 7.19% to AUD 3.43, recording the strongest advance of the session. Deep Yellow Limited (ASX:DYL) gained 6.10% to AUD 1.305, while Yancoal Australia Limited (ASX:YAL) rose 5.97% to AUD 5.68. On the downside, PEXA Group Limited (ASX:PXA) fell 4.94% to AUD 7.51. Liontown Limited (ASX:LTR) declined 4.14% to AUD 1.275, while Mineral Resources Limited (ASX:MIN) dropped 3.86% to AUD 54.59.

Commodity Update: The U.S. dollar strengthened modestly against most major currencies during early Asian trading as heightened tensions in the Middle East boosted demand for safe-haven assets. Investor sentiment remained cautious after last week's volatility, while rising energy prices added to market uncertainty. Gold declined 1.79% to USD 4,026.15 per ounce, silver advanced 1.97% to USD 57.45 per ounce, and copper gained 0.24% to USD 13,544.00 per metric ton. Brent crude oil surged 3.00% to USD 90.75 per barrel amid concerns over potential supply disruptions.

Our Stance: The Australian sharemarket ended marginally lower on Monday, with gains in the energy sector helping offset weakness across technology and several defensive sectors. While the S&P/ASX 200 remained broadly unchanged over the past week and year to date, investors continued to monitor rising geopolitical tensions in the Middle East after the IEA warned that prolonged disruption to shipping through the Strait of Hormuz could quickly affect global growth and inflation. Higher oil prices supported energy stocks, while market performance elsewhere stayed mixed. Near-term sentiment is likely to remain driven by geopolitical developments, commodity prices and their potential impact on inflation expectations.

The S&P/ASX 200 edged 2.00 points higher in the latest trading session, forming a small bullish candlestick that reflected cautious buying interest. Despite the modest gain, the broader technical outlook remains constructive, with the index continuing to trade comfortably above its 50-day Simple Moving Average (SMA), which is acting as a key dynamic support level and reinforcing the prevailing medium-term uptrend. Immediate support is positioned around 8,730.50, and holding above this level would help preserve the broader bullish structure while supporting the potential for further upside. A sustained rebound from this support zone could pave the way for a retest of the recent highs and potentially extend the ongoing rally. Conversely, a decisive break below 8,730.50 could weaken the near-term technical outlook, increase selling pressure, and raise the likelihood of a deeper corrective phase.