The Australian stock market experienced a slight downturn on Wednesday, May 14, 2025, amid shifting global growth sentiments. The S&P/ASX200 decreased by 0.17 percent to 8255.1, while the All Ordinaries index also fell by 0.12 percent, reaching 8501.5.
Market Drivers
This movement occurred as Wall Street approached all-time highs, spurred by an improved US economic outlook. Investors are rotating from defensive stocks to those with higher growth potential, with energy stocks gaining due to rising oil prices. Brent crude futures traded above $US66, supported by improved trade outlook and lower US inventories.
Sector Performance
Six of eleven local sectors experienced gains, led by energy stocks. The financial sector remained relatively flat; Commonwealth Bank increased by 0.5 percent. However, Macquarie shares dropped by 2.1 percent after ASIC initiated a lawsuit against its cash brokering arm, alleging systemic misleading conduct involving unreported short-selling trades over 14 years. Consumer discretionary stocks performed the worst, declining by 2.5 percent.
Individual Stocks
Aristocrat Leisure plummeted 13 percent due to disappointing half-year earnings. However, recent reports indicate a more positive financial performance for the first half of 2025, with a 9% increase in revenue and a 6% rise in normalised NPATA. The Australian dollar strengthened to 64.81 US cents, up from 64.13 US cents, following weaker US inflation data. On May 14, 2025, the Australian dollar is at 0.6472 against the US dollar.