ASX closes higher; Megaport surges 28% on contract to deliver compute

The news: The Australian sharemarket finished higher, with Megaport leading gains after securing major contracts to provide compute, network and storage services.

The benchmark ASX 200 index lifted 0.12% to 8,640.7, with four of the 11 sectoral indices in the green.

Biggest movers:

• Megaport (+27.7%) — Secured three major GPU, CPU, network and storage contracts across two US-based tech providers, valued at a combined total of USD182 million ($254 million).
• Bapcor (-18.5%) — Downgraded its FY26 earnings guidance, after seeing “materially deteriorated” trading conditions since late March. This was attributed to the impacts of US-Iran war and higher interest rates.
• GrainCorp (-13.5%) — Saw first-half net profit shrink to $5 million, compared to $58 million in the prior corresponding period amid a “challenging global grain market”.. Also reiterated underlying EBITDA guidance and underlying net profit after tax guidance.
• Xero (-9%) — Reported a 27% slide in full-year NPAT. Citi analyst Siraj Ahmed said the profit result missed estimates due to higher-than-expected interest and higher taxes during the year.

Other news:

• Worley (+2.3%) — Seen its share lift after announcing a new on-market share buyback of up to $300 million as part of its capital management initiatives.
• ASX Limited (+2.1%) — Appointed former Paris stock exchange boss Anthony Attia as its next managing director and chief executive, effective 1 September.
• Mercury NZ (+1.9%) — Outlined plans to invest up to NZD1 billion to scale its geothermal  energy platform as part of its next growth phase.
• oOh!Media (+1.5%) — Reported a 7% increase in first-quarter revenue for its Australian segment, while group revenue increased 4%.
• Air New Zealand (-5.6%) — Expects to report a pre-tax loss in the range of NZD340 million ($278 million) to NZD390 million for FY26, driven by elevated jet fuel prices and leased engine maintenance costs.
• Coles (-2.2%) — The Federal Court ruled on Thursday morning that the supermarket had misled shoppers on products labelled with the ‘Down Down’ promotion, with prices higher or the same as previously sold.
• Resolute Mining — Entered a trading halt pending a further update relating to a previous announcement made on Wednesday relating to a scoping study for its ABC Project in Côte d’Ivoire.