ASX 200 Today: Why All Sectoral Indices Are Taking a Tumble

Summary

  • ASX 200 has lost its upside momentum, trading 0.37% lower at 6991.5.
  • All 11 sectoral indices are falling from their opening prices with Energy index losing the most, around 1.85%.
  • Corporate Travel Management has gained 4.2% to A$19.83 as the company released its market update.

The surging cases of coronavirus across the globe have started to affect equity markets. After reaching a 52-week high of 7094.8 on Monday, the ASX 200 lost its upside momentum today, falling for the second day in a row. As of 10:22 AM AEST, the benchmarked index is trading 0.37% lower at 6991.5, breaking below the 7,000 mark.

Other broader market indices such as ASX 20, ASX 50 and ASX 100 are all trading in the negative territory, losing 0.63%, 0.69% and 0.7%, respectively.

Image Source: Copyright © 2021 Kalkine Media Pty Ltd.

As the market is falling amid rising concerns over the increasing coronavirus cases across the globe, volatility is coming back. The ASX 200 VIX index has notched up 6.96% to 12.5, depicting fear among investors.

It’s not just the Australian market that is taking the toll, the US market also witnessed selling across the board on Tuesday. The Dow Jones was down by 0.75%, while the S&P 500 lost 0.68%. The NASDAQ shed 0.92%, closing at 13,786.27.

The volatility spike of around 8% was seen in the CBOE VIX index, sending the fear index to the month’s high of 19.7.

Read More: ASX 200: Volatility is expected amid rising COVID-19 cases

Sectoral View

Coming to the market breadth, the weakness could be estimated by the fact that no sectoral index was positive for the day (as of 10:22 AM AEST). All 11 sectoral indices are falling from their opening prices with Energy index losing the most, around 1.85%.

Image Source: ID 21390527 © Thomaspajot | Megapixl.com

Oil market is becoming jittery over the concerns of the rising coronavirus cases in one of the biggest oil importers in the world, India. If more restrictions are put in place to curb the infection rate, the demand for crude oil would take a heavy toll.

Information technology index is at the second spot among losers, trading with a cut of 1.6%, followed by 1.4% fall in the financial space.

Gainers and Losers

Despite a one-sided falling market, there are a few shares that are holding their ground. The top gainer for the day is Corporate Travel Management Limited (ASX:CTD), gaining 4.2% to A$19.83. The reason for this outperformance is the company’s update, recording net cash of approximately $105 million on 31 March with no debt. The revenues have increased by 64% and underlying EBITDA by 44% as that of against FY19.

St Barbara Limited (ASX:SBM) is at the second position with 1.4% gain, followed by JB HI-FI Limited (ASX:JBH), which gained 1.38%.

On the losing front, Nuix Limited (ASX:NXL) nosedived by 13.8% as the company’s FY21 forecast for annualised contract value reduced to $168 million - $177 million from the earlier estimate of $199.6 million.

Whiteheaven Coal Limited (ASX:WHC) lost 5.5% to A$1.4 as the day is not good for the energy players. Lynas Rare Earths Limited (ASX:LYC) fell 5.4% to A$5.53, taking the number three spot in the top losers. 

Read More: When can we expect the Coronavirus Pandemic to ease off?


Disclaimer
The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK