ASX nudges up as tech bounces back

The ASX 200 rose 0.4% this week, a second straight weekly gain, as tech stocks rebounded despite growing questions over whether AI revenue is growing fast enough to justify the capital going into AI infrastructure. Uranium and lithium stocks slumped over the week, while telcos fell after SpaceX announced a major spectrum deal. 

This week’s best performers

Arena REIT (ASX:ARF) +16.34%
A buyer for much of tenant Edge Early Learning’s business lifted Arena REIT, the property trust that owns early learning centres, 16.34%. Edge is in administration, meaning an outside manager is selling or rescuing it, and Goodstart Early Learning has conditionally agreed to buy Edge businesses covering 20 of the 27 Arena-owned centres, which keeps rent flowing to the landlord. The other seven sit in a separate sale, and the deal still needs Arena’s consent, with the stock down 38% over 12 months. 

Domino’s (ASX:DMP) +12.35%
Domino’s Pizza Enterprises, the master franchisor behind the brand in Australia, Europe and Asia, rose 12.35% after a board member bought more shares on market. That doesn’t prove a recovery, but the turnaround is under a new chief executive from a global burger chain, and free cash flow improved despite July’s asset writedowns and store closures. The test is whether sales at existing stores turn up.

The Lottery Corporation (ASX:TLC) +6.79%
There was no fresh announcement behind the 6.79% rise in The Lottery Corporation, the operator of Powerball, Saturday Lotto and Keno, so August’s full-year result is the best guide. Revenue fell 2.7% to $3.58bn and profit before one-off items fell 6.3% to $342.5m after a rare drought of big jackpots hurt ticket sales. The dividend was held at 16.5c, but that was 107% of profit, and debt is set to climb after a $1.145bn payment to extend its Victorian licence. 

This week’s worst performers

Vulcan Energy Resources (ASX:VUL) -17.92%
Vulcan Energy Resources, the developer of a zero-carbon lithium project in Germany, fell 17.92% as the lithium sell-off kept running. The shares hit a six-year closing low and are now the most oversold stock on the ASX, so a bounce is possible. But Vulcan has little revenue yet, its €50.4m half-year loss is up from €30.7m, and weak lithium prices and high interest rates shrink what its future cash flows are worth today. 

Megaport (ASX:MP1) -15.94%
Megaport, the network provider that connects businesses to cloud and data centres, fell 15.94% with no new news behind it, after being one of the best performers last week. It was giving back that 13.86% jump on three AI-infrastructure contracts worth US$978.6m, and a sell-off after a spike that big is common as some holders take profits (sell to lock in a gain). The contracts and lifted FY27 revenue guidance haven’t changed, but the wide $720m to $810m range leaves how much lands in FY27 an open question.  

DroneShield (ASX:DRO) -14.25%
DroneShield, the counter-drone technology maker, fell 14.25% to $1.67, well below its 52-week high of $6.70. No single announcement stands out, but short sellers (traders betting the price will fall) hold 15.2% of the company and ASIC is still investigating its November 2025 ASX announcements. September’s place on a US$500m US homeland defence contract helps, but it isn’t guaranteed revenue.