Stock Markets February 23, 2026

Australian shares retreat as IT, healthcare and A-REITs weigh on S&P/ASX 200

Reece and Guzman Y Gomez lead gains while Megaport, Perenti and Austal suffer steep declines; volatility rises

By Jordan Park PRN
Australian shares retreat as IT, healthcare and A-REITs weigh on S&P/ASX 200
PRN

Australian equities closed lower on Monday with the S&P/ASX 200 falling 0.61% in Sydney. Strength in a handful of mid-cap names contrasted with broad sector weakness across information technology, healthcare and A-REITs. Volatility, measured by the S&P/ASX 200 VIX, rose, while commodity and currency markets showed mixed moves.

Key Points

  • S&P/ASX 200 closed down 0.61% in Sydney as losses in IT, healthcare and A-REITs pressured the market.
  • Top gainers included Reece Ltd (ASX:REH) +12.98%, Guzman Y Gomez Ltd (ASX:GYG) +9.13% and Ramelius Resources Ltd (ASX:RMS) +8.87%.
  • Largest declines came from Megaport Ltd (ASX:MP1) -17.31% (closing at a 52-week low), Perenti Global Ltd (ASX:PRN) -13.48% and Austal Ltd (ASX:ASB) -10.48%.

Australia's benchmark share index ended the trading day in negative territory on Monday as losses in the information technology, healthcare and A-REITs sectors pushed the market lower.

At the close in Sydney, the S&P/ASX 200 declined 0.61%.

The session's strongest performers were dominated by a small group of gainers. Reece Ltd (ASX:REH) topped the list, finishing up 12.98% - gaining 1.81 points to close at 15.75. Guzman Y Gomez Ltd (ASX:GYG) climbed 9.13%, or 1.60 points, to end at 19.13. Ramelius Resources Ltd (ASX:RMS) added 8.87% - an increase of 0.40 points - to trade at 4.91 at the close.

In contrast, several stocks recorded sharp declines. Megaport Ltd (ASX:MP1) led the laggards, tumbling 17.31% or 1.67 points to finish at 7.98. Perenti Global Ltd (ASX:PRN) fell 13.48% - down 0.38 points - to close at 2.44. Austal Ltd (ASX:ASB) was 10.48% weaker, slipping 0.66 points to 5.64 by the end of trading.

Decliners outnumbered advancers on the Sydney exchange, with 672 stocks falling versus 540 that advanced, while 348 issues were unchanged.

Megaport's closing price represented a 52-week low for the company, with the share price losing 17.31% or 1.67 to 7.98 at the close.

Market volatility showed an uptick. The S&P/ASX 200 VIX, a gauge of implied volatility for S&P/ASX 200 options, rose 7.08% to 12.67.

Commodities and currencies were mixed at the close. Gold futures for April delivery were higher, up 1.94% or 98.71 to $5,179.61 a troy ounce. Crude oil for April delivery slipped 1.14% or 0.76 to $65.72 a barrel, while the May Brent contract declined 1.02% or 0.73 to trade at $70.57 a barrel.

On the currency front, AUD/USD was effectively unchanged - moving 0.18% to 0.71 - while AUD/JPY fell 0.56% to 109.23. The US Dollar Index Futures was down 0.31% at 97.43.


Overall, the trading day featured a narrow group of notable rallies amid broader sector weakness, with investors seeing higher implied volatility and differing signals from commodity and currency markets.

Risks

  • Rising implied volatility - the S&P/ASX 200 VIX increased 7.08% to 12.67, suggesting greater uncertainty for equity option pricing and potential short-term market swings, which could affect portfolios with exposure to Australian equities.
  • Sector concentration of losses - weakness concentrated in IT, healthcare and A-REITs may create outsized downside risk for investors overweight those sectors.
  • Commodity and currency moves - mixed movements in gold, crude oil and currencies (AUD/USD, AUD/JPY) could feed through to valuations of commodity-linked stocks and companies with significant foreign exchange exposure.

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