Australia’s benchmark share market extended its downward momentum into a seventh consecutive trading session on Wednesday, but a softer-than-forecast inflation reading triggered a welcome late-session rebound that cut the day’s losses significantly.
The broad-based sell-off, the longest the Australian Securities Exchange has recorded since 2022, left the benchmark ASX 200 23.70 points lower at closing, a 0.27% drop to 8687 points. The broader All Ordinaries index followed a similar trajectory, slipping 19.30 points or 0.22% to settle at 8915.70. The Australian dollar also weakened against the U.S. dollar, ending the session at 71.61 U.S. cents.
Trading was deeply mixed across sectors: of the 11 major industry groups tracked on the exchange, six closed in positive territory while five retreated. Utilities and energy stocks led the upward charge, posting gains of 2.18% and 1.27% respectively. Top utility performers included Origin Energy, which climbed 3.17% to $12.03, AGL, which rose 2.38% to $9.48, and LGI Limited, which added 2.86% to $3.60. Energy stocks extended their recent rally, with Woodside Energy gaining 2.01% to $33.05, Santos edging 0.39% higher to $7.77, and Ampol closing up 0.93% at $34.58.
On the losing side, healthcare stocks were the day’s biggest drag on the index. Biotech giant CSL fell 2.42% to $125.78, sleep technology firm ResMed slipped 1.11% to $30.85, and cochlear implant manufacturer Cochlear extended its recent downturn with a 3.23% drop to $90 per share.
The sharp afternoon rebound followed the release of new inflation data from the Australian Bureau of Statistics, which showed headline inflation rose 1.1% in the March 2026 quarter, with the 12-month rate hitting 4.6%. The quarterly increase was driven largely by a sharp jump in global oil prices, but the overall reading came in below the consensus forecasts that investors had priced in ahead of the announcement. Before the data was released, the ASX 200 dipped to an intraday low of 8661, but rallied almost immediately to a peak of 8711 as traders digested the softer inflation figure.
Belinda Allen, head of Australian economics at Commonwealth Bank, noted that the tamer inflation reading gives the Reserve Bank of Australia flexibility to hold current interest rates steady at its upcoming May policy meeting. Allen still expects a narrow vote to raise the cash rate, however, and predicts another split decision amid conflicting economic signals, calling the May outcome “more precarious” than the March meeting. Prior to the inflation release, markets had priced in an 80% chance of a rate hike in May; that probability has since fallen to 70%.
In individual company news, Woodside’s rally was supported by strong quarterly operating results, which showed operating revenue rose 7% year-over-year to US$3.26 billion (AU$4.54 billion) for the three months ending March. The average selling price for the company’s portfolio of gas, oil liquids and ammonia climbed 11% to $63 per barrel of oil equivalent. Mining services provider Codan saw its shares soar 15.45% to $42 after it upgraded full-year earnings guidance, now projecting a net profit of around $170 million for the 2026 financial year. In contrast, childcare operator G8 Education plunged 31.25% to $0.16 per share, a new multi-year low, after announcing it would close 40 underperforming centers in a proactive response to ongoing cost-of-living pressures that have squeezed household discretionary spending on childcare.