The Australian sharemarket surrendered early gains to finish marginally lower on Tuesday, as renewed fears about artificial intelligence-driven disruption weighed on technology and insurance stocks, offsetting strength in the energy sector.
The S&P/ASX 200 slipped 3.7 points, or 0.04%, to close at 9,022.3, with five of the 11 sectors ending in negative territory.
Technology led the declines, with WiseTech Global shedding 3.7%, Xero down 4.6%, and TechnologyOne finishing 3.8% lower as investors continued to reassess valuations amid accelerating AI developments.
Consumer discretionary stocks were also weaker. Wesfarmers lost 1.8%, Aristocrat Leisure slipped 2%, and Tabcorp declined 1.2%.
ARB Corporation slumped 13.1% after reporting a 17.2% fall in first-half profit to $42.2 million, with underlying profit after tax down 14.4%.
Financials also weighed on the index, particularly insurers, which have come under renewed pressure following the recent launch of an AI tool from Insurify that has heightened investor concerns about potential industry disruption.
Insurance Australia Group lost 3.3%, QBE Insurance dipped 1.6% and Steadfast Group fell 5.4%.
The major banks were mixed. Commonwealth Bank of Australia finished little changed, National Australia Bank added 1%, and Westpac gained 1.5%, while ANZ traded 0.7% lower after former chief executive Shayne Elliott withdrew legal action against the lender.
Energy stocks provided support as crude oil prices hovered near fresh seven-month highs. Santos added 0.4%, and Ampol advanced 1.1%, while Woodside Energy rose 2.4% despite reporting a 24% decline in full-year profit to US$2.718 billion.
Viva Energy jumped 8.1% after posting full-year EBITDA of $700.9 million, supported by strong commercial and industrial sales and an improved second half performance in its convenience and mobility division.
Mining stocks were mixed. BHP climbed 1.4% to close at fresh record highs, Fortescue gained 1.1%, while Rio Tinto slipped 1.1%.
In corporate news, Monadelphous surged 5.9% after delivering record half-year revenue of $1.53 billion, ahead of forecasts, and upgrading guidance.
Nine Entertainment ticked up 0.5% after reporting underlying net profit of $95 million, comfortably beating market estimates.
On the bond markets, yields ticked higher, with the 10-year rate rising 0.2% to 4.702% and the two-year yield adding 0.1% to 4.195%.
