Australia's ASX sees up to 21% higher expense in 2027, shares tumble (updated)

ASX

26/05/2026 01:50

Corrects revenue period to year-to-date to April 30, from year to April 30, in last paragraph

May 26 (Reuters) - Australian stock exchange operator ASX ASX.AX raised its 2027 expense forecast by 18% to 21% on Tuesday, driven by technology spending, regulatory remediation and growth investments, sending its shares towards their worst session since April 2000.

The higher spending comes as ASX accelerates investment in technology modernisation, including upgrading key trading and settlement systems, and responds to regulatory inquiries through programmes such as its Accelerate initiative.

Operating expense growth, excluding depreciation and amortisation, is seen between 13% and 16% for the 2027 financial year, the exchange operator said in a statement.

ASX raised its 2027 capital expenditure forecast to between A$180 million ($129.02 million) and A$200 million, citing technology cost inflation and new product development. Its earlier projection was between A$160 million and A$180 million.

The company said it sees 2028 capex between A$170 million and A$190 million.

Shares of the firm fell as much as 11.2%, heading for their worst session since April 2000, while the broader ASX200 index .AXJO was down 0.5%, as of 0043 GMT.

In April, the Australian Securities and Investments Commission said in a report that ASX had prioritised delivering higher shareholder returns over ensuring critical market infrastructure was in place.

The report followed a string of blunders, cost overruns and missed timetables for technology upgrades at the stock exchange operator that have frustrated market participants, the regulator and the central bank.

Separately, ASX said on Tuesday it had agreed to sell its 49% stake in settlement platform Sympli to partner ATI Group for a nominal amount, resulting in an after-tax loss of about A$12 million to be recognised in 2026.

The company said unaudited revenue for the year-to-date to April 30 rose 12.5% to A$1.03 billion.

($1 = 1.3951 Australian dollars)

 (Reporting by Rajasik Mukherjee; Editing by Subhranshu Sahu)

 ((Rajasik.Mukherjee@thomsonreuters.com;))