How Is The ASX Information Technology Sector Performing These Days?

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The information technology industry that was under dark lately, tried to outperform ASX 200 index on November 05, 2018 and further recovered slightly on November 06, 2018, i.e., as at mid-day trading. The past few days have marked a disappointing run as there was a high selling pressure which resulted in fall in the share prices of many tech stocks. This was not limited to information technology sector, but impact was seen across other sectors as well. Few examples of the stocks in the sector have been given below:

XERO LIMITED (ASX: XRO)

Yesterday, the shares of XRO traded at A$41.11 per share. There was a meagre increase in the price by 0.317% which is equivalent to 0.130 points. Within a span of 1 year, the company has given a negative performance. However, in the past 5 days the company has performed slightly better by giving a positive performance of 4.41% (as at November 02, 2018). If we see the moving average convergence and divergence line (MACD line), the same has cut the signal line from the below and is moving in the upward direction. XRO was further up 0.83% on November 6, 2018 (4:22 PM AEST), and is expected to post healthy financials in upcoming result. 

AFTERPAY TOUCH GROUP LIMITED (ASX: APT)

Yesterday, the share price of APT closed at A$12.90 per share. There was a reported fall in the share price by 1.376% which is equivalent to fall of 0.180 points. Possible reasons could be that investors are going negative on the stock given lack of catalysts while the company has sold its European e-services business. In last one year, the performance of the company has been 134.97%. If we see the candlestick pattern, the arrival of doji has been seen. This indicates that preceding trend is losing traction which is followed by a shooting star candlestick pattern. This indicates that buyers may have been exhausted, and sellers are back in the game. It is to be seen whether there will be a trend reversal or not. APT was up at $ 12.990 on November 6, 2018 (4:22 PM AEST).

WISETECH GLOBAL LIMITED (ASX: WTC)

Yesterday, the share price of WTC closed at A$15.4 and WTC was further down on November 06, 2018. There was a fall in the share price by 6.098% which is equivalent to -1 point, as at November 05, 2018. The possible reasons could be due to the recent update made by the CEO Richard White with regards to the acquisitions of CargoIT. Further, technology sector drag is playing over the stock. On the other hand, WTC has upgraded its full year revenue and the guidance report of EBITDA. It might be possible that investors have re- evaluated the valuations of the company which resulted in the fall in the share price of the company. For the past 1 year, the company gave a positive performance. Although as per the graph, the MACD line is above the signal line, however, it became parallel to signal line on 02 November 2018.

NEARMAP LTD (ASX: NEA)

NEA edged lower on November 06, 2018, continuing the downtrend. Yesterday, the share price closed at A$1.35. It was reported that the share price fell down by 5.923% which is equivalent to 0.085 points. In the past one year, the performance of the company was good. The performance of the company was 135.25%, as at November 02, 2018. Although the MACD line is above the signal line, however in the last 2 days the MACD line has slightly changed its pattern.

Looking at the way the share prices have been moving, recovery in tech sector is something that investors are eyeing for. The sector which is known to offer growth is at the moment under some pressure.


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