Index Update: The S&P/ASX 200 closed higher on Friday, gaining 15.50 points, or 0.18%, to finish at 8,764.20. The Australian market posted a modest advance as gains across the majority of sectors outweighed weakness in health care and information technology, resulting in a broadly positive session. Despite the benchmark index ending in positive territory, the performance across sectors remained mixed, with seven of the 11 sectors closing higher.

Utilities led the gains, rising 1.01% on the day and extending its five-day advance to 2.42%. Consumer staples (+0.81%), materials (+0.81%), energy (+0.48%), A-REITs (+0.42%), industrials (+0.41%), and consumer discretionary (+0.35%) finished in positive territory.

On the downside, health care (-1.30%) was the weakest-performing sector, followed by information technology (-1.17%). Telecommunication services (-0.50%) and financials (-0.19%) also ended lower, limiting the benchmark's overall gains.

Over the past five trading sessions, the S&P/ASX 200 has declined 0.73%, although the index remains virtually unchanged on a year-to-date basis.

Macro Update: The UN's International Maritime Organization (IMO) has suspended the planned evacuation of more than 11,000 sailors stranded in the Strait of Hormuz after a cargo ship was struck by an unidentified projectile. While several evacuations had already been completed, IMO Secretary-General Arsenio Dominguez said the operation would remain on hold until adequate safety guarantees were secured. The incident occurred 7.5 nautical miles southeast of Oman's port of Dahit, with no casualties reported. The attack followed a warning from Iran's Islamic Revolutionary Guard Corps (IRGC), which declared that vessels using the IMO-designated transit route without coordinating with Iran would face unacceptable risks. US officials, cited by American media, said Iran was responsible for the attack.

Top Market Movers: Among the top gainers, Kingsgate Consolidated Limited (ASX:KCN) climbed 4.46% to close at AUD 5.390, followed by Ramelius Resources Limited (ASX:RMS), which gained 3.81% to AUD 3.000. Perseus Mining Limited (ASX:PRU) advanced 3.62% to finish at AUD 5.150. On the downside, Mesoblast Limited (ASX:MSB) was the worst performer, tumbling 9.38% to AUD 1.885. 4DMedical Limited (ASX:4DX) fell 8.97% to AUD 4.160, while Elevra Lithium Limited (ASX:ELV) declined 8.94% to close at AUD 9.570.

Commodity Update: The U.S. dollar slipped on Friday and was on track to end its six-session winning streak after the latest U.S. inflation data came in line with market expectations, reducing concerns over additional interest rate hikes by the Federal Reserve. Gold declined by 1.00% to USD 4,007.70, silver fell 3.72% to USD 56.20, and copper dropped 1.13% to USD 13,150.00. Brent crude oil eased 0.50% to USD 74.89 per barrel as improving shipping through the Strait of Hormuz and optimism over a potential U.S.-Iran peace agreement weighed on prices despite renewed security concerns near Oman.

Our Stance: The Australian market closed modestly higher, supported by gains across utilities, materials, consumer staples and energy, although weakness in health care, information technology and financials limited broader upside. Sector performance suggests investors remain selective rather than broadly risk-on, with defensive and commodity-linked stocks attracting interest. External developments continue to shape sentiment, particularly geopolitical tensions surrounding the Strait of Hormuz and evolving inflation expectations in the United States. Meanwhile, softer commodity prices, including declines in gold, silver and copper, alongside easing crude oil prices, may influence resource-related stocks in the near term. Market direction is likely to remain sensitive to global macroeconomic data, geopolitical developments and expectations surrounding future central bank policy.

The S&P/ASX 200 gained 15.50 points in the latest trading session, forming a bullish candlestick pattern that reflects renewed buying interest. From a technical perspective, the broader outlook remains constructive, with the index continuing to trade above its 21-day Simple Moving Average (SMA), which is acting as an important dynamic support level and reinforcing the prevailing uptrend. Immediate support is located near the 8,700 level, and holding above this zone would help preserve the current bullish market structure. A successful defence of this support could attract fresh buying interest and pave the way for a continuation of the upward trend. On the upside, sustained strength from current levels may encourage the index to retest its recent highs and extend gains in the sessions ahead. However, a decisive break below the 8,700 support area could weaken the near-term technical outlook, undermine investor confidence, trigger increased selling pressure, and increase the likelihood of a deeper short-term correction.