The Australian sharemarket closed slightly higher on Monday, rebounding from early losses despite ongoing investor concerns over leadership instability at WiseTech Global.
The S&P/ASX 200 gained 12 points, or 0.14%, to finish at 8,308.2, with five of 11 sectors in positive territory.
The technology sector suffered a sharp 7% decline, dragged down by WiseTech Global’s 20.1% plunge. Investor sentiment soured after four directors resigned, citing “irreconcilable differences” over the role of founding CEO Richard White.
The departures raised governance concerns, prompting the ASX compliance team to question whether WiseTech had withheld material information from investors.
Regulators sought clarity on White’s executive role, given that a formal contract had not yet been finalised. WiseTech denied any wrongdoing, stating that White’s engagement terms were publicly disclosed in October and that both the board and White had been operating under those conditions.
Other technology stocks also struggled, with Block shedding 12.9% after its earnings report last week, while Appen and BrainChip lost 3.7% and 3.3%, respectively.
Reece Limited also dropped 13.2% after reporting a 3% drop in sales as revenue declined to $4.4 billion, while EBIT dropped 17% to $305 million and EPS fell 19% to 28 cents.
Despite early losses, the ASX recovered some ground, supported by gains in the utilities and financial sectors and a fresh slew of local earnings results.
APA Group added 7.7% after the company reported a 7.1% year-over-year increase in first-half FY25 revenue to A$1.36 billion.
NIB Holdings jumped 12.5% following a better-than-expected 1H FY25 result.
On the bond markets, 10-year and 2-year rates were 0.1% and 0.8% lower at 4.443% and 3.845%, respectively.
