The Australian sharemarket experienced a downturn at Friday’s opening bell, primarily driven by renewed anxieties surrounding over-investment and potential disruption within the artificial intelligence sector. Adding to the downward pressure were sharp declines in the prices of gold and silver. The S&P/ASX 200 Index fell by 60.60 points, a 0.7 per cent decrease, reaching 8982.9 by 10.15am AEDT, with eight out of the eleven sectors experiencing losses. Despite the day’s dip, the benchmark remains up 3.1 per cent for the week, potentially marking its strongest gain since April.
Technology stocks were particularly hard hit, with overall declines in the sector surpassing 23 per cent over the past month. TechnologyOne saw a decrease of 5.5 per cent, Xero fell by 4.1 per cent, and WiseTech Global experienced a significant dive of 13.3 per cent, reaching a four-year low. Within the materials sector, Northern Star declined by 2.4 per cent, Newmont by 3.2 per cent, Genesis Minerals by 5.7 per cent, and South32 by 5 per cent. Cochlear, a global hearing implant company, experienced a substantial 12.3 per cent drop following a reported 21 per cent decrease in net profit to $162 million, falling short of expectations. The company also indicated that its full-year profit would likely be at the lower end of its previously projected $435 million to $460 million range.
In contrast, Westpac shares firmed by 1.5 per cent after the bank announced a net profit of $1.9 billion for the three months ending in December, representing a 5 per cent increase compared to the last two quarters of 2025. Elsewhere, Webjet tumbled 23.2 per cent following the termination of takeover discussions with Helloworld and BGH Capital due to the absence of a binding proposal. The online travel agency also revised its underlying FY26 EBITDA guidance downwards to a range of $28 million to $29 million, excluding Webjet Business Travel.
Wesfarmers saw a 1 per cent increase following their announcement of a multi-year partnership with Microsoft aimed at further integrating artificial intelligence across its various brands, including Bunnings, Kmart, Blackwoods, and Priceline. GQG Partners, a global investment firm, jumped 5.3 per cent as it reported higher revenue in its 2025 financial year due to rising management fees based on 10.8 per cent growth in average funds under management. Nick Scali, the furniture retailer, experienced a 9.6 per cent drop despite posting a 36.4 per cent jump in net profit to $41 million in the first half of the financial year, surpassing its recently upgraded guidance.
