Tech sector pulls ASX 200 lower, Tabcorp plunges on demerger

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Highlights

  • ASX 200 extended losses by 20.10 points today.
  • Technology remained the top losing sector while financials cheered the market.
  • Tabcorp, Nufarm, Allkem were some newsmakers of the day.

Australian shares finished today’s trade slightly lower, with tech sector plunging the most.  The Australian popular ASX 200 index dropped 20.10 points to 7,128.80. Extending yesterday’s losses further, the index is down 4.24% on a year-to-date basis.

Technology sector stocks appeared to be influenced by the rough end in US markets last night. The gravity was enough to pull along most sectors in the red by market close. However, the financial sector emerged as the top gainer, pushed by the Australian big four banks.

Sectoral performance and trends

Financials and real estate were two sectors that closed higher today. Technology sector seemed affected by social media app Snapchat’s downgraded quarterly guidance, which led to a wicked night for US stocks. Financials on the other hand remained positive, fuelled by the big four banks’ gains.

A-REITs also performed well gaining 0.46% today.

The ASX 50 index, representing biggest 50 stocks on ASX in terms of market cap, was down 0.164%. Midcap representative index ASX Midcap 50 also dropped 0.543%. The small caps were also aligning as ASX Small Ordinaries fell 1.046% down. While the All-Ordinaries index lost 0.347%, the volatility indicator A-VIX closed 1.45% lower.

Top gainers and losers

2022 Kalkine Media ®, Source- ASX

Image Description- Share price performance

Gold miner Perseus Mining (ASX:PRU) from the materials sector gained the most from today’s trade, followed by lithium-focused Allkem Limited (ASX:AKE). On the losing end, Tabcorp Holdings Limited (ASX:TAH) from the consumer discretionary sector lost maximum. Nufarm Limited (ASX:NUF), another consumer stock was the next big loser on the exchange today.

Newsmakers of the day

  • TechnologyOne (ASX:TNE) created a buzz in the market with its soaring share of subscription-based revenue numbers. The software company announced a 18% spike in its profit after tax in the six months ending 31 March 2022.
  • Tabcorp (ASX:TAH) fetched attention over its newly demerged lottery and kino business. The spun-off entity is now listed in ASX as ‘The Lottery Corporation Limited’ with the ticker code ‘TLC’.
  • Few resource companies got ratings update from broker Barrenjoey, based on the new governments EV inclination. As a result, shares of Allkem (ASX:AKE) and Liontown Resources (ASX:LTR) caught the investor eye.
  • Shares of FinTech business Pushpay (ASX:PPH) got locked for a trading halt after Australian private equity firm BGH Capital acquired almost 20.3% interest in it.
  • Aviation major Qantas (ASX:QAN) gained attention on its majority stake acquisition in online travel business TripADeal.

Related Read- What made Tabcorp’s (ASX:TAH) share price collapse 80%?

On Asian markets side

Asian shares were edging down today, pulled down by the US tech heavy Nasdaq’s rough night. Besides, the S&P 500 futures were down 0.9%. The Asia-Pacific shares witnessed a reported trading slump. While Japan’s manufacturing activity reflected a slow growth and Nikkei fell 0.8%, Chinese blue chips were down 1.1%. despite promises of stimulus.

On commodities front

Oil prices remained down on worries of a possible global recession and China’s Covid-19 related curbs. The negative sentiments outweighed the demand upsurge expected from the US summer driving season and Shanghai's reopening. Adding on to pressures are global oil supply crunch, alongside green energy burdens.  

Also read- New PM Albo in Quad meeting today: What's on agenda


 


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