The Australian sharemarket edged into positive territory on Thursday following a late afternoon rally in technology stocks, though caution persisted amid a sell-off in the energy sector and lingering fears of an artificial intelligence bubble.
The S&P/ASX 200 index inched up 3 points to 8588.2, snapping three sessions of losses. Even so, the local bourse has shed 1.3% since Monday.
Out of the 11 sectors, four closed in the red.
The technology sector rebounded in the final minutes of trading from a Nasdaq-inspired sell-off sparked by reports that Blue Owl would not back a US$10bn ($15 billion) deal to build a data centre in Michigan with the tech giant Oracle.
The news still weighed on many local tech stocks, with NextDC falling 4.4% to $12.14 and Megaport down 1.8% to $12.13. Beaten-down family-tracking app Life360 extended losses and closed at a six-month low of $32.18. Its stock price has plummeted more than 40% since a record high in July.
“When we experience pullbacks in tech and AI and also commodities, you’re likely to see buying after,” said Jessica Amir, a market strategist at online trading platform Moomoo.
“We’re expecting to see record spending on AI and chips, and this is supporting the idea that the tech sector and Australia’s mining sector will probably produce the best investment returns for 2026.”
WiseTech bucked the trend, up 1.6% to $68.04, while Xero rallied 2.5% to $113.04.
Energy was the biggest laggard on Thursday, weighed down by a 2.7% sell-off to $22.8 in oil and gas producer Woodside Energy on news that chief executive Meg O’Neill is leaving to take on the top job at global giant BP.
The drop comes despite a 2% gain in crude prices after geopolitical tensions escalated sharply. Santos bucked the sector, climbing 1% to $6.1 after it received $1 billion from Fluor Australia following a Queensland Supreme Court ruling in the company’s favour. Whitehaven also gained, up 1.2% to $7.88.
Elsewhere, uranium miners were also sold off, led by a 25% plunge in Boss Energy to a four-year low of 38.5¢ after it downgraded its Honeymoon project in South Australia. It was the biggest laggard on the local bourse. Paladin was also hit, dropping 4.8% to $8.32.
In company news, Bapcor led the index gainers, soaring 15.5% to $2.05 in its biggest one-day jump for five years after the resignation of chief executive Angus McKay, whose departure follows a difficult period in which the car parts retailer’s share price has slumped by 56% since the start of the year.
In the financial sector, Bendigo Bank fell 1.5% to $10.14 on news the country’s financial crimes agency, AUSTRAC, was investigating its anti-money-laundering rules compliance after four people were arrested.
But it was a good day for gambling platform BetMakers, which rallied 5.7% to 18.5¢ after it secured a multi-year agreement with Stake to supply its RaceOdds+ platform as the wagering operator expands its global horse racing offering.
Likewise, infrastructure group APA rose 1.2% to $9.25 after it agreed to sell its 20% equity interest in GDI, the owner of the Allgas gas distribution network, to Stonepeak.