Stock Markets February 6, 2026

Australian Stocks Close Lower as Broad Sell-Off Hits A-REITs, Tech and Gold

S&P/ASX 200 drops 2.03% amid wide market declines and a jump in implied volatility

By Ajmal Hussain RMD PDN
Australian Stocks Close Lower as Broad Sell-Off Hits A-REITs, Tech and Gold
RMD PDN

Australian equities slid at Friday's close, with the S&P/ASX 200 finishing down 2.03%. Real estate investment trusts, information technology names and gold-related stocks weighed on the market. Market breadth was heavily tilted toward decliners and the S&P/ASX 200 VIX climbed to a one-month high as commodity prices moved unevenly.

Key Points

  • S&P/ASX 200 closed down 2.03% as A-REITs, IT and gold-related stocks led losses.
  • Market breadth was heavily negative with 1,099 decliners versus 190 advancers; VIX rose to 13.93, a one-month high.
  • Commodity moves were mixed - April gold futures fell, while crude oil and Brent rose modestly; AUD traded near 0.69.

Australian share prices ended the trading week lower, with losses concentrated across A-REITs, the information technology sector and gold-related holdings. By the close in Sydney, the S&P/ASX 200 had fallen 2.03%.

The session's leading individual performers included Brambles Ltd (ASX:BXB), which rose 3.48% - gaining 0.79 points to finish at 23.51. Resmed Inc DRC (ASX:RMD) added 1.23%, up 0.46 points to close at 37.92, while PEXA Group Ltd (ASX:PXA) advanced 1.10%, or 0.15 points, to end the day at 13.74.

On the downside, Paladin Energy Ltd (ASX:PDN) posted the heaviest decline among S&P/ASX 200 members, dropping 10.92% - a fall of 1.35 points to a closing price of 11.01. Flight Centre Ltd (ASX:FLT) fell 10.27%, down 1.58 points to 13.81, and DroneShield Ltd (ASX:DRO) lost 9.09%, slipping 0.29 points to finish at 2.90.

Market breadth was decisively negative on the Sydney exchange, with 1,099 stocks falling, 190 gaining and 341 unchanged.

Volatility moved higher - the S&P/ASX 200 VIX, a gauge of implied volatility on S&P/ASX 200 options, rose 21.46% to 13.93, marking a new one-month high.

Commodity markets showed mixed directional moves. Gold futures for April delivery were lower by 0.36%, a decline of 17.45, to trade at 4,872.05 per troy ounce. Crude oil for March delivery rose 0.95%, or 0.60, reaching 63.89 a barrel, while the April Brent contract increased 0.87%, or 0.59, to 68.14 a barrel.

Foreign exchange rates and index futures were modestly moved. AUD/USD traded at 0.69 with a noted change of 0.29% in the market data. AUD/JPY was up 0.05% to 108.87. The US Dollar Index Futures was down 0.04% at 97.66.


Taken together, the session displayed a clear skew toward selling pressure and higher implied volatility, with select large moves among individual stocks and mixed signals from commodities and currencies. The gains in a handful of names did not offset broad declines across sectors that helped push the benchmark lower by just over two percentage points on the day.

Risks

  • Rising implied volatility - S&P/ASX 200 VIX increased 21.46% to 13.93, suggesting elevated option market uncertainty - this affects traders and derivatives markets.
  • Commodity price fluctuations - gold futures declined while crude and Brent oil rose, creating uncertain inputs for related sectors such as miners and energy companies.
  • Broad selling pressure - a large imbalance between decliners (1,099) and advancers (190) indicates market-wide downside risk that could weigh on investor sentiment across multiple sectors.

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