The Australian sharemarket ended Tuesday’s session little changed, as strength in technology offset weakness in the health care and financial sectors following last week’s sell-off driven by concerns over heavy artificial intelligence spending.
The S&P/ASX 200 Index slipped 2.7 points, or 0.03%, to close at 8,867.4. Eight of the 11 sectors finished higher.
Technology stocks extended gains, with WiseTech Global up 2.6%, TechnologyOne adding 1.8%, Xero up 2.2%, and NEXTDC advancing 3.4%.
The Materials sector ended higher overall, supported by gains in heavyweight miners BHP, Rio Tinto, up 1.1% and 1.4%, respectively, while Fortescue slipped 1%.
Uranium producers also rebounded after heavy selling last week amid doubts that artificial intelligence-driven demand would translate into a significant nuclear power boom.
Paladin Energy rose 5.5%, Deep Yellow gained 7.1%, and NexGen Energy added 3.8%.
The Health Care sector weighed as CSL fell 5%, although Ramsay Health Care gained 2.6%, Pro Medicus added 4%, and Cochlear posted gains of 1.5%.
Macquarie Group added 0.8% after the investment bank reported higher December-quarter profits across all four of its divisions and indicated that its flagship commodities and global markets business would deliver improved full-year earnings.
G8 Education tumbled 20.6% after the childcare operator flagged a $350 million non-cash goodwill impairment. The company also scrapped its final dividend and paused its on-market share buyback, citing weaker occupancy levels and rising costs.
Electro Optic Systems surged 11.8% as trading resumed following a report by short-seller Grizzly Research. The company rejected the report’s findings, describing the conclusions as misleading, manipulative and pejorative.
Region Group gained 0.4% after upgrading its full-year earnings outlook and lifting its forecast funds from operations to 16¢ per security from 15.9¢, implying 3.2% growth on the prior year.
DroneShield also jumped 7.3% after appointing former Thales Australia and Knorr-Bremse executive Michael Powell as chief operating officer, strengthening its leadership team as demand for anti-drone technology grows.
On the bond markets, yields eased, with the Australian 10-year yield down 0.1% at 4.844% and the 2-year yield falling 0.2% to 4.259%.
