ASX slid 0.26% on Thursday. Tech shares led gains even as big banks dropped.
Market snapshot
The S&P/ASX 200 closed down 23.7 points at 8,955, a fall of 0.26 per cent on Thursday, as banking and some mining names weighed on the bourse. Even though some tech companies did well, the overall market still slipped because of other sectors. Look, the market wasn’t collapsing — six of 11 sectors finished in the green — but the headline number tilted lower by the end of trade.
Trading was choppy through the session, with risk appetite pulled in two directions.
Banks under pressure
Financials were the day’s main drag. The four major banks all finished in negative territory: Commonwealth Bank lost 2.77 per cent, National Australia Bank shed 2.49 per cent, Westpac fell 1.65 per cent and ANZ declined 1.28 per cent. Investors pared exposure to bank shares after a brief run of gains earlier in the week, and the retreat in those heavyweight names proved enough to push the index lower despite pockets of strength elsewhere.
When the big banks move in the same direction, they often overshadow smaller gains in the market. And the big four still make up a large share of the ASX’s market capitalisation, so their swings matter.
Tech rally offsets some losses
Information-technology stocks were the day’s standout, rising about 7.4 per cent as investors scooped up names that had been hit earlier in the year.
WiseTech Global was among the best performers, jumping roughly 12.36 per cent, while Xero rose about 9 per cent and TechnologyOne added around 6.14 per cent. Those moves followed similar patterns overseas where AI-related sentiment has helped technology firms recover ground.
Smaller tech and software companies saw heavy flows as traders rotated back into growth names. That rotation helped keep the market from sliding further even as banks and some miners lost value.
Energy and resources mixed
Energy stocks were volatile after Viva Energy entered a trading halt late Wednesday following a fire at its Geelong refinery. The plant — one of only two operating in Australia — can process up to 120,000 barrels of oil a day.
Ampol initially jumped on the news but pared gains to finish about 0.15 per cent higher, while larger energy producers Woodside Energy and Santos fell 1.06 per cent and 1.03 per cent respectively.
In mining, iron ore names moved in different directions: Fortescue ended slightly up, while BHP and Rio Tinto slipped. Local gold miners weakened, with Evolution Mining down around 4.15 per cent and Northern Star off about 1.58 per cent as bullion prices shifted after the latest global moves.
Global headlines and the FX picture
Global markets were, broadly speaking, on a firmer footing. The MSCI All Country World Index rose to a new record as investors reacted to signs the US and Iran might extend a temporary ceasefire, helping unwind some war-driven risk premia. Wall Street continued its rally into Wednesday trade and that helped set a risk-on tone in offshore sessions.
The Australian dollar climbed to near levels not seen since mid-2022, trading around US71.70¢ on the stronger risk appetite and broad weakness in the US dollar. Currency moves fed into local equity flows — a stronger Aussie can make some exporters and miners look less attractive, while helping domestic-focused firms.
Jobs data and economic context
Domestic economic data released during the day showed the unemployment rate held at 4.3 per cent in March, according to the Australian Bureau of Statistics. The labour market resilience came despite higher prices linked to the regional tensions, evidence that hiring remains steady even as inflationary pressures persist.
Markets are watching those data for signs of whether local growth will cool enough to change the Reserve Bank of Australia’s thinking, though Thursday’s release was broadly in line with expectations.
Wider market moves noted
Outside the large-cap moves, other listed names had notable sessions. Technology and growth-oriented companies saw the biggest single-day percentage gains, while several small-cap and resources names reacted to company-specific operational updates or quarterly production numbers. Trading volumes in some of the best-performing tech names were elevated as short positions were bought back and momentum traders chased the bounce.
Stockhead’s coverage earlier in the week highlighted how headlines about a temporary ceasefire had swung sentiment sharply, producing oversized moves in travel and commodity-exposed stocks on days when the news flow turned more positive. That same theme — headlines driving rapid rotations between safe-haven and risk assets — played out again during Thursday’s session.
What this means for investors
Tech and growth stocks tend to do better when geopolitical tensions ease, but banks and energy companies react more to local economic news and company events. For traders it’s been a day of quick rotations; for longer-term investors the session is another reminder that headline news can produce volatile but often temporary swings.
Investors will be keeping a close eye on upcoming earnings reports, especially from sectors that saw big changes recently. Quarterly updates from miners and retailers, along with any fresh operational details from the refineries involved, will likely drive the next round of headline-driven trades.
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The S&P/ASX 200 finished at 8,955, down 23.7 points, a fall of 0.26 per cent.
This article was created with AI assistance.
