The Australian sharemarket experienced a slight downturn on Tuesday, primarily driven by renewed concerns regarding the impact of artificial intelligence. This anxiety triggered selling in technology and insurance stocks, overshadowing a rally in the commodities sector. The S&P/ASX 200 Index decreased by 8.90 points, or 0.1 per cent, settling at 9017.10 by the afternoon.
Overnight selling on the Nasdaq had a ripple effect on the ASX, with Atlassian, a software company that develops collaboration, development, and professional tools, plummeting by more than 9 per cent. Other tech companies, including WiseTech Global, Xero and TechnologyOne, also saw declines. Capital.com analysts suggest that the market is shifting its perception of AI, now viewing it as a threat to existing businesses rather than an opportunity.
Financials were also affected, with Insurance Australia Group, QBE, and Steadfast all experiencing losses. The launch of an AI tool from Insurify has heightened fears of industry disruption within the insurance sector. In contrast, the energy sector emerged as the strongest performer, driven by crude oil prices climbing to their highest level since August. Woodside Energy saw gains despite a drop in full-year profit, while Santos and Ampol also rose.
In corporate news, Monadelphous surged after reporting record half-year revenue, while Nine Entertainment, a media company which publishes The Australian Financial Review, saw gains after its underlying net profit exceeded expectations. Conversely, Adore Beauty tumbled after its net profit declined due to deep discounting during Black Friday sales. Other notable movements included Viva Energy’s gains following a strong full-year EBITDA and ARB Corporation’s plunge after a drop in first-half profit.
