ASX Shares Plunge Most in a Decade on Tech Cost Surge

ASX Warns of Higher Spending, Shares Plunge Most in a Decade

Australian stock exchange operator ASX warned on Tuesday of higher spending in 2027 to upgrade its technology and develop new products, sending its shares plunging more than 12% in their worst day since August 2012.

Expense and Capital Expenditure Outlook

ASX said its total expenses would rise by up to 21% in 2027 relative to the previous year, with capital expenditure forecast raised to A$180 million-A$200 million from A$160 million-A$180 million. In 2028, capital expenditure is expected between A$170 million and A$190 million.

Technology and Regulatory Pressures

Costs are set to rise sharply as the company upgrades its technology, invests in artificial intelligence, improves internal systems and automation, and bears the cost of running older and newer systems simultaneously. Spending is also increasing to meet regulatory requirements following a critical report from the Australian Securities and Investments Commission (ASIC) in April.

Market Reaction and Dividend Policy

ASX shares fell as much as 12.6% to A$51.40, marking their worst intraday session since early August 2012, compared with a marginal 0.4% drop in the benchmark ASX200 index. The bourse operator reiterated its dividend payout ratio of 75%-85% of underlying net profit after tax and said its unaudited revenue for the 10 months to April 30 was up 12.5% at A$1.03 billion.