Australian shares closed sharply lower on Wednesday, as a steep sell-off in healthcare stocks triggered by a profit warning from Cochlear Limited weighed heavily on the broader market.
The S&P/ASX 200 Index fell 105.8 points, or 1.2%, to 8,843.6, with seven of the 11 sectors finishing in negative territory.
Investor sentiment remained fragile despite news that United States President Donald Trump would extend the Iran ceasefire indefinitely.
While the move reduced the immediate risk of escalation, uncertainty persisted as negotiations stalled and the U.S. maintained its naval blockade around the Strait of Hormuz, where shipping activity remains significantly disrupted.
The Health Care sector led the market lower after Cochlear plunged 40.7% following a sharp downgrade to its FY26 earnings outlook. The company cut its underlying net profit guidance to between $290 million and $330 million, down from $435 million to $460 million previously, citing weaker demand in developed markets, Middle East-related impacts and softer conditions in the United States.
The decline spread across the sector, with CSL Limited falling 5.7%, ResMed dropping 2.5%, and Estia Health losing 1.5%.
Financial stocks also came under pressure, extending recent losses. Commonwealth Bank fell 2.5%, National Australia Bank declined 2.4%, Westpac dropped 2.1%, and ANZ Group slipped 2.3%.
Bank of Queensland was among the worst performers, tumbling 9.1% after reporting a 4% fall in first-half cash profit to $176 million, missing market expectations. The lender also flagged margin pressure, tougher operating conditions and rising competition.
Energy stocks were mixed, with Woodside Energy down 1.4%, Santos finishing flat, and Viva Energy edging 0.4% lower.
In contrast, Ampol rose 3.8% after reporting a strong first-quarter update, supported by higher refining margins and resilient fuel demand. The company also confirmed it had secured fuel supplies through to the end of June.
Mining stocks ended mixed. Rio Tinto fell 0.5%, while Fortescue Metals Group edged 0.1% higher. BHP gained 1.2% after its March quarter production update met expectations, with copper guidance lifted to the upper end of its range and iron ore output exceeding forecasts.
Consumer discretionary stocks also declined, with Tabcorp down 0.9%, Wesfarmers falling 0.9%, Harvey Norman shedding 1.7%, and Guzman y Gomez dropping 2.8%.
In contrast, consumer staples provided some support. Woolworths Group rose 0.9%, Coles Group added 0.4%, and Endeavour Group gained 0.3%.
Treasury Wine Estates was the standout performer, surging 16.5% after announcing a major restructuring that will see its Penfolds brand no longer operate as a standalone division.
On the bond markets, yields were mixed. The 10-year rate was flat at 4.962%, while the 2-year yield rose 0.2% to 4.634%.
