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Highlights
- ASX 200 edged down about 1.03% today, reversing yesterday’s gains.
- Information technology sector was the top loser and utilities performed best.
- While ABS unveiled current account data, investors are eager on the GDP numbers.
After Monday’s glittery opening, the ASX 200 witnessed a quick turnaround today. The benchmark index dropped 1.03% to 7,211.20 and traced below its 125-day moving average. Though in the last five days, the index has gained 1.16%, it is still lower by 3.14% on a year-to-date basis.
Sectors and indices today
Nine of 11 sectors closed in the red zone following the ASX 200 index. Utilities was the best performer, gaining 0.08%. On the other hand, the biggest loser of the day was information technology, down 1.90%. Notably even financials were down 1.61% and telecom stocks lost 1.50%.
Volatility indicator- A-VIX closed moved higher, gaining 3.82%. Bucking the trend, the All-ordinaries index closed lower by 0.90%. Large cap representative ASX 50 index (XFL) lost 1.161%. The midcap index ASX Midcap 50 (XMD) was down 0.643% and the ASX Small Ordinaries index (XSO) too by 0.199%.
Top gainers and losers
©2022 Kalkine Media®, Source- ASX website
Share price performance
The top performer of the day was Beach Energy Limited (ASX:BPT) that gained strong on the back of the EU’s agreement to partially ban Russian oil imports. Following suit from the energy sector was Paladin Energy Ltd. (ASX:PLD). On the flipside, Tyro Payments Limited (ASX:TYR), ZIP Co Limited (ASX:Z1P)and EML Payments Limited (ASX:EML) lost alongside the tech sector, which bled bad.
On the economic data front, investors awaited the monthly building approvals, current account data, and the quarterly GDP print. As per the ABS data released during the day-
- Australian building approvals fell by 2.4% in April while the private sector houses rose 0.5%. Now, the impact on real estate sector will be worth a watch.
- The current account surplus fell in the range of AU$5,703 to AU$7,532 million after seasonal adjustments.
- In the business indicators data, the company gross operating profits rose 10.2% after all seasonal adjustments. Wages and salaries grew 1.8% and even inventories were up 3.2% after seasonal adjustment.
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On the Asian market front
Asian stocks remained volatile as markets witnessed a Treasuries sell-off while oil jumped as the EU pushed for Russian oil ban. To add on, inflation worries, and the possibility of aggressive central bank moves continue to affect investor sentiments.
Chinese stocks were buoyed by the factory activity data and easing of lockdown in Shanghai. Japanese equities remained only slightly changed. Hang Seng Index rose 0.37% while Nikkei was up 0.07%. Besides, South Korean KOSPI moved up 0.11% while ASX 200 tracked low.
Later this week, investors are awaiting the US jobs report, including the non-farm payrolls.
On the commodities front
Gas shortages are looming around the world with refiners struggling to meet global demand. Reportedly, the world’s fuel demand has moved back to the pre-pandemic levels, however the supply side is still weak.
Talking about oil, the black liquid gained on EU’s agreement to slash oil imports from Russia. The decision tightened the supply side further amid rising demand and an upcoming US and European summer driving season. Both benchmarks Brent Crude and WTI posted gains.
Gold was down today morning in Asia impacted by a strengthening dollar and rising US Treasury yields. In other precious metals, silver, platinum, and palladium dropped a bit following ques of the yellow metal.
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