Australian shares drop as uncertainty over Mideast weighs; Suncorp surges

Australian shares slipped on Friday and were on track for their worst week in over a month due to uncertainty about a lasting peace deal in the Middle East, although insurer Suncorp bucked the broader trend after bagging a reinsurance cover. The S&P/ASX 200 index dropped 0. 2% to 8, 775 by 0034 GMT. The benchmark was set to lose nearly 2% this week, if losses hold, and would be its worst week since March 16. Lebanon and Israel extended their ceasefire for three weeks after a high-level meeting at the White House, although markets remain uncertain about a lasting peace deal. Miners lost 0. 6%. Lithium producer IGO slid 11. 5%, after flagging lower annual production and higher cost forecasts for the Greenbushes lithium mine. The project is 51% owned by its joint venture with Tianqi Lithium Corp, and is the highest-grade ore reserve of any hard-rock lithium mine globally. Shares of no. 3 miner Fortescue were up 0. 1%, after posting a 5% jump in third-quarter iron ore shipments, although it narrowly missed estimates. Gold stocks weighed further on the sub-index after falling 0. 8%, as prices of the precious metal fell to a one-week low. Shares of Evolution Mining dropped 1. 3%, while Northern Star Resources was down 1. 5%. Meanwhile, Suncorp soared 9. 5%, after the insurer bagged reinsurance protection of up to A$2. 4 billion ($1. 71 billion) over five years, and projected a gross written premium growth of 3% for fiscal 2026. Suncorp helped the financials sub-index remain steady, while gains were offset by top banks. Commonwealth Bank of Australia fell 0. 4%, while Westpac was down 0. 5%. Energy stocks surged 0. 5%, as producers gained on surging oil prices. Oil and gas producer Santos surged 1. 2%, while Woodside Energy gained 1. 2%. In New Zealand, the benchmark S&P/NZX 50 index was flat at 12, 884. 19.

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