Australian shares settled lower on Tuesday as weak corporate earnings of Domino’s Pizza and Johns Lyng Group soured market sentiment, with consumer discretionary and technology stocks leading the decline.
The S&P/ASX 200 index fell 0.7% to 8,251.9, posting its sixth session of loss in seven.
Weak U.S. market leads and “nasty” corporate results dragged down the benchmark, said Henry Jennings, a senior market analyst at Marcus Today Pty.
The Nasdaq and the S&P 500 fell overnight as investors worried about demand for technology supporting artificial intelligence.
In Sydney, Domino’s Pizza Enterprises closed 10.5% lower and was among the top laggards, after the pizza chain operator posted first-half profit below expectation. It was the top loser on the consumer discretionary sub-index, which fell 2.7%.
Building services provider Johns Lyng Group plunged 33.4% to post its lowest close since early-September 2020, after reporting weaker-than-expected first-half results. The stock was the top drag on the benchmark index.
Australian stocks slip as technology, commodity stocks decline
Meanwhile, Zip Co rose 13.9% to become the top gainer on the benchmark after the Australia-based digital financial services firm said its first-half cash earnings more than doubled and forecast annual earnings ahead of consensus expectations.
Among sectors, technology closed 1.6% lower, with Jennings saying WiseTech Global continued to weigh on the sub-index.
WiseTech Global closed 2.8% lower. The stock fell more than 20% on Monday after four directors decided to step down.
Financials ended 0.6% lower, with the “Big Four” banks shedding between 0.1% and 1.3%. The sub-index had snapped a seven-session losing streak on Monday.
Miners ended 0.8% lower, while gold stocks rose 0.7%.
Energy stocks climbed 0.3% on higher oil prices as fresh U.S. sanctions on Iran increased supply concerns.
Woodside Energy ended 2.8% higher after the oil and gas major beat annual profit estimates.
New Zealand’s benchmark S&P/NZX 50 index ended 1.8% lower at 12,307.27.
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