Australian sharemarket soars to new record high as tech stocks rebound, Woolworths hits 17-month high

The Australian sharemarket has set a new record high, with stubborn inflation data doing little to curb the buying spree. The S&P/ASX 200 set a new high water mark by the close on Wednesday, eclipsing October’s previous high to finish up 106 points, gaining 1.18 per cent to 9128.3. Tech stocks plus Woolworths hitting a 17-month high drove the flurry of green numbers. The tech sector gained 5.9 per cent, consumer staples rose 5.7 per cent and only three of 11 sectors lost ground. Weeks of sell-offs on Wall Street and the local bourse over AI disruption fears abated overnight and into Wednesday’s trading. Xero clawed back 5.5 per cent, Technology One gained back 14 per cent of its 52-week losses, Megaport gained 9.8 per cent and Iress rose 9.6 per cent. Markets are increasingly confident the coding capabilities of OpenAI and Anthropic will allow smaller firms to seriously disrupt the major software players. The big mover on Wednesday was sector heavyweight WiseTech. Announcing 2000 job losses in favour of AI, WiseTech shares gained 11 per cent, stemming some of the 50 per cent bleed during the past six months. Climbing profits at Fortescue prompted a 4.6 per cent gain, while BHP added 3.2 per cent for a new record high. Tabcorp beat expectations in its half-year results, with shares rising 23.5 per cent. Soaring revenue and profits for DroneShield saw its shares gain 12.6 per cent. In the consumer staples sector, Woolworths posted bountiful half-year results, seeing shares gain 13 per cent to a 52-week high. EToro analyst Josh Gilbert said of Woolies’ returns: “While today’s result isn’t the smoking gun to silence all the bears, it is a sign of things starting to turn”. “(Food sales) guidance moving to the upper end of the mid-to-high single-digit range is a confident signal from a management team that has spent the better part of two years managing expectations downward,” he said. “Amanda Bardwell has had a difficult job since taking over, and there’s still plenty of work to do, but this result shows the strategy is working and … rewarding investors for their patience. “With Coles reporting on Friday, the market will get a much clearer picture of how the grocery wars are actually playing out between this duopoly.” Coles slipped 0.3 per cent on the day. Penfolds owner Treasury Wine Estates gained 3.1 per cent, recouping heavy losses it has suffered since posting results a week ago. Cobram Estate Olives gained 3.3 per cent, with Ricegrowers rising 2.3 per cent and animal feed firm Ridley Corp. lifting about 1.2 per cent. Qantas, Ramsay Health Care and Super Retail are among firms posting results on Thursday.