The Australian share market experienced its eighth consecutive day of decline near noon AEST, as a profit warning from retailing giant Woolworths Group weighed heavily on the sector. Woolworths, which operates supermarkets and other retail businesses providing groceries and everyday essentials, saw its share price dive after alerting investors to a slowdown in profit growth, partly due to anticipated impacts on milk and bread prices. This warning also led to a fall in rival Coles’ share price. Despite the cautionary outlook, Woolworths reported stronger-than-expected sales, attributed to robust trading over the Easter period and increased pantry stocking following the outbreak of conflict in the Middle East.
In other market news, mineral resources firm MinRes upgraded its guidance, leading to a surge in its share price, while Regis Healthcare also tipped growth. Meanwhile, the Australian Securities Exchange (ASX), Australia’s primary stock exchange which facilitates the trading of shares and other financial products, announced the appointment of Darren Yip as its interim CEO. This leadership change comes at a crucial period for the market operator, as it continues to face pressure from regulators to enhance its risk management and governance frameworks.
Broader economic factors also influenced market sentiment. Global oil prices surged to a four-year high, with Brent crude resetting its wartime record after signals regarding continued blockades in the Strait of Hormuz. Separately, the burgeoning Artificial Intelligence sector saw major tech players Microsoft, Meta, Amazon, and Alphabet confirm the arrival of significant returns from their AI investments, setting the stage for further growth. Domestically, approximately 100,000 NSW public servants, covered by the Public Sector Association, are set to receive a $1000 bonus, triggered by a 4.4 per cent rise in Sydney’s inflation rate.
