Australian share market falls 2.1pc over week as Israel-Hamas escalation fears intensify

Fears of an escalation of the Israel-Hamas has shaved 1.2 per cent off the Australian share benchmark on Friday.

The Australian sharemarket plunged on Friday to finish the week 2.1 per cent lower as traders worry about the ongoing conflict in Ukraine and an escalation of conflict between Israel and Hamas.

The S & P/ASX200 fell 1.2 per cent to 6,900.7 points, while the All Ordinaries also lost 1.2 per cent to sit at 7,089.7 points.

The benchmark was a sea of red, with 10 of 11 industry sectors falling. Energy stocks were the sole winners, rising 0.16 per cent as Brent crude futures jumped 1 per cent to $US93.27 a barrel.

Investors remain concerned about an escalation of conflict in the Middle East. Picture: AFP / Brendan Smialowski

The gold price also climbed to reach $US1990 an ounce, setting an Australian gold price record of $3150 a tonne.

Gold miners were among the best performers across the benchmark. Evolution Mining added 2.2 per cent to $3.68 while Northern Star Resources rose 1.3 per cent to $12.13.

The Australian dollar dropped 0.2 per cent to trade at 63.2 US cents.

Material stocks were the worst performers, dropping 1.7 per cent, led by the fall in Liontown shares which lost almost a third of their value across the trading session.

Liontown Resources has tapped lenders and investors to plug a $450 million funding shortfall for its Kathleen Valley project in WA. Picture: supplied.

At the end of trading, Liontown Resources stocks were down 31.9 per cent to $1.90 a share.

On Thursday, the lithium miner announced it would take on $760 million of debt and issue up to $420 million in shares to bankroll the construction of its Kathleen Valley mine in WA without the backing of Albemarle.

In other company news, shares in financial advice firm Insignia Financial fell 12.8 per cent to $2.04 following the announcement that its chief executive Renato Mota will exit the business in early 2024.

Qantas chief executive Vanessa Hudson faces a fresh headache from shareholders. Picture: NCA NewsWire / Martin Ollman

In more bad news from Qantas management, five major proxy advisers, including the Australian Shareholders Association, recommended shareholders vote against the airline’s remuneration report and have demanded further information over its failed High Court appeal.

Despite the news, shares jumped 0.6 per cent to $4.77.