Australia shares hit four-week low; Woolworths dives as rising costs affects earnings

Woolworths

30/04/2026 08:06

ASX200 ends 0.2% lower on Thursday

Benchmark adds 2.2% over April

Woolworths slumps 7.8%, warns of rising costs

Miners, banks end April in green

By Shruti  Agarwal

April 30 (Reuters) - Australian shares ended at a four-week low on Thursday, extending losses to an eighth straight session as surging oil prices stoked inflation and growth worries, while top grocer Woolworths sank over 7% after warning rising costs would hit earnings.

The S&P/ASX 200 index .AXJO fell 0.2% to 8,665.80 points, its lowest closing level since April 2. The benchmark has lost more than 3% in the past eight sessions, though it still ended the month up 2.2%, buoyed by heavyweight miners and banks.

April proved a roller-coaster month for equities: the U.S.-Iran ceasefire hopes lifted the gauge near its pre-war levels, but most of those gains were quickly erased as talks stalled and energy flows through the Strait of Hormuz remained constrained.

On Friday, oil prices shot to their highest in four years after a report that the U.S. was considering potential military action against Iran, intensifying pressure on risk-sensitive equities.

"Without some relief on the energy front, the index (ASX 200) is likely to remain range-bound or test lower supports," said Tim Waterer, chief market analyst at KCM Trade.

On the bourse, miners .AXMM fell 2.7% in their worst session since April 2, despite firmer iron ore and copper prices.

Woolworths WOW.AX shed 7.8% after trimming the full‑year earnings outlook for its domestic food segment, pulling consumer staples .AXSJ down 5%.

Waterer said earnings hits linked to the conflict remain isolated cost shocks for now and do not represent an earnings reset across the board, but warned a prolonged energy shock could trigger "widespread margin pressure" later in the year.

Financials .AXFJ added 1% on the day, with the so called 'big four' banks, up between 0.5% and 1.3%. The sector gained 2.9% in April.

Energy stocks .AXEJ extended gains to add 1.4%, but ended the month 2.7% lower.

Focus now turns to Tuesday's central bank cash rate decision, with all major banks predicting a 25‑basis‑point hike.

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 rose 1% to 12,903.31 points.

(Reporting by Shruti Agarwal in Bengaluru; Editing by Nivedita Bhattacharjee)

((Shruti.Agarwal@thomsonreuters.com))