ASX 200 tanks 2% amid bloodbath on Wall Street

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Highlights

  • The benchmark ASX 200 took a hit of 2.02% to 7,216.2 in the first 15 minutes of trading.
  • The Dow Jones Industrial Average cracked over 1000 points to end at 32,997.98 on Thursday.
  • 196 shares of the ASX 200 were trading in the negative zone in early trade.

The Australian share market slid at the open on Friday, as Wall Street witnessed a bloodbath on Thursday with sharp declines in global equites as market participants fretted over aggressive central bank policies across the globe to put a leash on soaring inflation. The benchmark ASX 200 took a hit of 2.02% or 148.5 points to 7,216.2 in the first 15 minutes of trading, while the ASX All Ordinaries index was down 2.13% to 7,476.4. The A-VIX shot up by 13.56% to 16.58.

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US Treasury yields jumped while most of the global equity markets were hammered on Thursday, as aggressive rate hikes by central banks triggered the fear of a suppressed growth.

Wall Street sharply ended lower on Thursday with the Dow Jones Industrial Average falling 3.12% or losing over 1,063 points to 32,997.98, while the S&P 500 lost 3.56% to end at 4,146.86 points. The NASDAQ Composite took the worst hit, shedding 4.99% to 12,317.69.

Market Action

Coming to the top ASX 200 laggards, intense selling pressure can be gauged by the fact that only 4 stocks in the entire ASX 200 index were trading in the green. Event Hospitality and Entertainment Limited (ASX:EVT) was the top gainer, surging 1.73% to AU$14.68, while Paladin Energy shares tanked 8.48% to AU$0.755 to become the top loser.

On the sectoral front, all 11 sectors were in the red at the opening tick, with the materials sector losing the most, over 1.1%.

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Newsmakers

  1. News Corporation (ASX:NWS)
  • The company’s revenues in Q3 FY22 stood at AU$2.49 billion, a 7% increase compared to AU$2.34 billion in Q3 FY21.
  • Net income in the reported quarter jumped 8% to AU$104 million, compared to AU$96 million in the same period last year.
  • News Media continued to benefit from the rebound in the advertising market, new content licensing revenues and strong digital subscriber gains.
  1. REA Group Limited (ASX:REA)
  • The group clocked revenue of AU$869 million in the nine months ended 31 March 2022, a 32% Y-o-Y increase.
  • EBITDA for the reported period surged 27% on a Y-o-Y basis to AU$523 million.
  • Core operating costs, excluding acquisitions, increased by 6% YoY, mainly due to higher employee costs.
  1. Macquarie Group Limited (ASX:MQG)
  • For the year ended 31 March 2022, Macquarie delivered a profit of AU$4.7 billion, up 56% on the prior year.
  • The Board resolved to pay a final ordinary dividend of AU$3.50 per share, totalling AU$6.22 per share in FY22, up from AU$4.70 per share in the prior year.
  • The group hasn’t provided the guidance for FY23.
  1. Minbos Resources Limited (ASX:MNB)
  • Securities of Minbos have been placed under a trading halt by the ASX on a voluntary request by the company.
  • The halt will be lifted on 10 May 2022 or when the company releases a pending announcement, whichever comes earlier.
  1. Talon Energy Limited (ASX:TPD)
  • The company has successfully completed the AU$11-million Share Placement, announced on 29 April 2022.
  • Canaccord Genuity (Australia) Ltd and Chieftain Securities WA Pty Ltd which acted as Joint Lead Managers to the Placement were paid a fee of 6% of the funds raised.
  • Net proceeds would be used to further advance exploration and evaluation work at the Walyering and Gurvantes XXXV Projects.

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