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Highlights
- Broad market decline led by tech and mining sectors
- WiseTech and Mineral Resources experienced notable drops
- Higher bond yields and interest rate concerns add to market pressure
The Australian sharemarket experienced a notable decline on Tuesday, with the S&P/ASX 200 Index falling by 1.2%, or 96.7 points, to 8247.7, reflecting broad market weakness. This drop comes after the market was near record highs on Monday, influenced by a general cooling of momentum on Wall Street. All 11 industry sectors on the ASX 200 were in negative territory as of midday.
The retreat in the market followed a sharp sell-off in the U.S., where the Dow Jones dropped by 0.8%, and the S&P 500 slipped 0.2%. The U.S. market had previously gone through an impressive stretch without consecutive losses, marking one of the strongest winning streaks since 1928. According to market observers, the Australian market is in an overbought position, making it susceptible to profit-taking in the short term.
Among the sectors, technology stocks were the hardest hit, with WiseTech (ASX:WTC) leading the downturn. WiseTech’s shares plummeted by 2.7%, extending the company’s losses after founder Richard White sold shares to fund a personal legal settlement. On Monday, the stock fell nearly 15%, highlighting the ongoing volatility surrounding the company.
Mineral Resources (ASX:MIN) also saw a steep decline, falling by 4.7% on Tuesday. This extended its losses after a report by The Australian Financial Review revealed alleged long-term tax evasion by the company's managing director, Chris Ellison. This negative news weighed heavily on the stock, following its more than 10% drop on Monday.
Additionally, toll road operator Transurban (ASX:TCL) dipped by 1.5%, despite reaffirming its FY25 distribution guidance and reporting steady growth in traffic. The company indicated that traffic volumes had improved across most markets except for Melbourne.
In other notable moves, Viva Energy (ASX:VEA) lost 3.9% after it issued a warning about weaker retail conditions, lower tobacco sales, and rising operational costs. Audinate Group (ASX:AD8), a software company, dropped 10% after cautioning that it would likely miss its full-year gross profit target, citing ongoing industry headwinds.
Meanwhile, companies such as Suncorp (ASX:SUN), Magellan (ASX:MFG), and Transurban (ASX:TCL) were set to hold their Annual General Meetings (AGMs) later in the day.
