ASX Shares Slide as 2026 Cost Outlook Jumps Amid CEO Exit and ASIC Probe

ASX Ltd shares fell sharply after the Australian Securities Exchange warned that fiscal 2026 costs will rise far more than previously expected, overshadowing a modest increase in first-half profit. The exchange operator now forecasts total expenses to climb between 20% and 23% this financial year, up from earlier guidance of 14% to 19%, as it absorbs mounting costs linked to system outages, regulatory scrutiny, and an ongoing ASIC investigation.

The update triggered a sell-off, with ASX shares dropping as much as 2.6% to A$53.92, extending the prior session’s 6.2% decline. The stock underperformed the broader benchmark index, which gained 0.5%, reflecting investor concerns over rising operational risk and governance challenges.

For the six months ended December 31, ASX reported underlying net profit after tax of A$263.6 million, up from A$253.7 million a year earlier. Stronger trading volumes supported earnings growth, but escalating expenses weighed heavily on overall performance. Total costs surged 20% to A$264.3 million, driven by regulatory probe expenses, business transformation initiatives, ageing technology infrastructure, and intangible asset write-offs.

Leadership uncertainty has added to pressure on the exchange, with CEO Helen Lofthouse planning her departure. The transition comes as ASX faces intensified regulatory attention following a CHESS batch settlement failure in late 2024. The company has since released an incident review and pledged a A$1 million credit disbursement to affected settlement participants through fee rebates.

Further operational setbacks, including an August 2025 name mix-up and a December outage on its announcements platform, have drawn additional scrutiny. Meanwhile, the Australian Securities and Investments Commission is conducting a sweeping review of ASX’s governance and operational risk management framework, with a final report expected by March 31, 2026. ASIC inquiry costs are projected to reach the top end of the A$25 million to A$35 million range.

Despite cost pressures, ASX declared a fully franked interim dividend of 101.8 Australian cents per share, down 8.5% year-on-year, reflecting a 75% payout ratio at the lower end of its revised guidance.