The Australian sharemarket edged higher on Tuesday, propelled by a resurgence in technology and uranium stocks following a recent sell-off driven by worries over substantial investments in artificial intelligence. The S&P/ASX 200 Index advanced by 14.70 points, or 0.2 per cent, to reach 8884.8. Eight of the eleven sectors experienced gains, with materials leading the way. The Australian dollar also strengthened, consolidating around US70.90¢ after hitting a three-year high of US70.98¢, buoyed by a weaker US currency and a global equities rally.
Technology emerged as the strongest sector, with data centre operator NextDC climbing 3.5 per cent, Megaport 3.7 per cent, and Xero 3 per cent. Uranium miners rebounded strongly after last week’s heavy selling, which was sparked by concerns that AI demand might not trigger a nuclear power boom. Paladin rose 5.3 per cent, Deep Yellow 7.8 per cent, and NexGen Energy 3.5 per cent. Meanwhile, miners trimmed earlier gains but remained higher, supported by copper trading near $US13,000. BHP added 1 per cent, Rio Tinto 0.7 per cent, and Capstone Copper 3.6 per cent.
Financials underperformed, particularly insurers, after US insurance broker stocks fell due to the launch of an AI tool from Insurify, prompting fears of industry disruption. Steadfast dived 10.5 per cent, Insurance Australia Group 5.9 per cent, QBE 3.9 per cent, and Suncorp 3.3 per cent. Elsewhere, Macquarie Group, an investment bank that reported higher profits across its four business divisions for the December quarter, firmed 0.9 per cent. Macquarie signalled its commodities and global markets unit would post improved annual income.
In other corporate news, childcare operator G8 Education, which operates childcare centres, plunged 18.7 per cent after flagging a $350 million non-cash goodwill impairment, scrapping its final dividend, and pausing its on-market share buyback due to weaker occupancy and rising costs. Treasury Wine Estates, a wine company, jumped 4.8 per cent after its updated first-half EBITS guidance of $236 million exceeded prior guidance. Electro Optic Systems surged 9.3 per cent as it resumed trading following a critical report by a short-seller, while Amplitude Energy tumbled 20.3 per cent after its exploration well found water instead of gas.
