The Australian Securities Exchange (ASX) opened sharply lower before recovering some ground, as investor concerns over WiseTech Global’s leadership turmoil intensified. WiseTech shares plummeted nearly 20% after four directors resigned, citing irreconcilable differences over the role of founding CEO Richard White.
Meanwhile, Wall Street suffered its worst session since December, as weak US consumer sentiment and falling business confidence rattled investors.
ASX Falls Early but Recovers
The S&P/ASX 200 index started the day in negative territory but managed to recover, closing at 8,308.20, up 12 points (0.14%). Despite this marginal gain, the index has declined 2.89% over the past five days and remains 3.56% below its 52-week high.
Market sentiment was mixed as investors weighed global economic uncertainties against corporate developments in Australia. Five sectors finished higher, while six sectors closed in the red.
Sector Performance
- Gaining sectors:
- Utilities (+3.37%)
- Financials (+1.82%)
- Consumer Discretionary (+1.21%)
- Staples (+1.03%)
- Healthcare (+0.58%)
- Declining sectors:
- Industrials (-0.39%)
- Telecommunications (-0.55%)
- Energy (-1.25%)
- Real Estate (-1.48%)
- Materials (-1.51%)
- Information Technology (-6.81%)
WiseTech Shares Crash as Directors Quit Over CEO Dispute
WiseTech Global Limited (ASX: WTC) was the biggest drag on the ASX after its shares plunged 20.09%, closing at $97.25 following a $24.45 drop. Investors reacted negatively after four board members, including the independent chair, resigned over internal conflicts.
In their resignation statements, the directors cited “intractable differences” regarding Richard White’s ongoing role. White, who stepped down as CEO last year, continues to hold an executive position as founding CEO and director. However, a formal contract detailing his role had not been finalised, raising concerns among investors and regulators.
A governance expert noted that uncertainty over leadership structure can lead to instability and shake investor confidence.
Figure 1: Performance of Wisetch Global on February 24, 2025 [ASX]
ASX Compliance Team Questions WiseTech’s Transparency
Adding to the turmoil, the ASX compliance team raised concerns over WiseTech’s transparency, questioning whether the company had withheld material information from investors.
Regulators sought clarification on whether WiseTech had disclosed all relevant details about White’s engagement before the resignations. In response, WiseTech denied any wrongdoing, stating that the key terms of White’s role were made public in October. The company said both White and the board had been operating under those terms, with a formal contract expected to be signed in due course.
Wall Street’s Sharp Drop Adds to ASX Volatility
The ASX’s early losses mirrored Wall Street’s decline overnight. The S&P 500 suffered its worst session since December, as weak consumer sentiment and business confidence weighed on investor outlooks.
US market analysts warned that economic uncertainty, coupled with corporate earnings concerns, could keep global markets under pressure in the near term.
Top Gainers and Biggest Losers
Despite the turmoil, some ASX stocks performed well. NIB Holdings Limited (ASX: NHF) led the gainers, rising 13.81%, followed by EVT Limited (ASX: EVT), up 11.26%.
Biggest fallers included:
- WiseTech Global (ASX: WTC) – down 20.09%
- Perenti Limited (ASX: PRN) – down 15.76%
- Iress Limited (ASX: IRE) – down 13.70%
Australian Dollar Shows Mixed Performance
The Australian dollar strengthened slightly against the US dollar, trading at $0.6380, up 0.37%. However, it weakened against the euro (-0.16%), while remaining stable against the British pound (+0.02%).
Market Outlook: Uncertainty Remains
Looking ahead, analysts expect continued market volatility, with WiseTech’s leadership situation creating lingering uncertainty.
A fund manager commented that investors would closely monitor how WiseTech addressed governance concerns and stabilized its board.
Meanwhile, broader market sentiment will likely be influenced by US economic data and global earnings reports in the coming days.
