ASX faces a sharp jump in costs and capital spending as it races to fix ageing systems after a string of operational breakdowns drew tough action from the corporate regulator. Investors reacted brutally to the new spending plans, driving the share price down more than 13% to just above $51 in its steepest single-day fall on record.
Management now expects expenses to jump by as much as 21% in the 2027 financial year, largely because technology is getting more expensive and upgrades are more extensive than first thought.
ASX has lifted its capital expenditure guidance for FY27 to between $180 million and $200 million, up from an earlier range of $160 million to $180 million, and introduced new guidance for FY28 of $170 million to $190 million while leaving FY26 capex unchanged. Those dollars are earmarked for its technology modernisation push and an expanded “Accelerate Programme”, which it put in place after an inquiry by the Australian Securities and Investments Commission found long-term underinvestment versus global peers.
The company also expects FY27 total expenses to grow between 18% and 21%, with operating expenses excluding depreciation and amortisation tipped to rise 13% to 16% relative to FY26 total expenses. Analysts at Macquarie say every new guidance line fell short of market expectations, helping to explain the violent share price reaction.
ASX is reshaping its portfolio, agreeing to sell its 49% stake in property settlement platform Sympli to joint venture partner ATI Group for a nominal amount. That exit will trigger an after-tax loss of about $12 million, which the company will book as a significant item in FY26, effectively drawing a line under a non-core investment that has not delivered the hoped-for returns.
The broader technology programme, funded by higher capex and ongoing cost growth, is designed to upgrade trading and post-trade infrastructure, respond to customer demands for new products and align the exchange’s systems with global standards after the regulator’s panel highlighted years of underinvestment.
