Tech leads broad sell-off yet gold stocks shine: ASX tumbles, down over 2% at noon

Market Reports

by Lauren Evans

The Australian sharemarket has tumbled this morning following Wall Street's fall overnight on heightened recession fears in the US. This comes after a renewed global sell-off as rising interest rates have hit the US, UK and Switzerland in the last 24 hours.

On the ASX, all sectors are in the red. Technology is leading the fall, down 3 per cent, followed by materials, consumer discretionary and energy. Consumer staples have had the fewest losses, down 0.3 per cent .

At noon, the S&P/ASX 200 is over 2 per cent or 133 points lower at 6458.10.

The SPI futures are pointing to a fall of 119 points.

GUD (ASX:GUD) is the worst performer in the ASX 200, down 21 per cent to $7.58 following a trading update yesterday after the market closed. The manufacturer lowered its FY22 underlying EBITA guidance to $147 million, citing that supply chains remain volatile, and in some cases, pressures have intensified. This is followed by Afterpay owner Block (ASX:SQ2), down 8.1 per cent to $80.73 as it leads tech’s decline, and Collins Foods (ASX:CKF), down 6.3 per cent to $8.31.

Mining stocks are adding to the fall following six straight days of declines for iron ore. BHP (ASX:BHP) has declined 3.3 per cent to $42.58, Fortescue Metals (ASX:FMG) has fallen 3.7 per cent to $18.90 and Rio Tinto (ASX:RIO) is trading 3 per cent lower at $108.27.

Energy stocks are down despite a rise in oil prices overnight. Woodside Energy (ASX:WDS) is down 1.6 per cent to $31.70, Beach Energy (ASX:BPT) is down 2.5 per cent to $1.67 and Santos (ASX:STO) is trading 3 per cent lower at $7.78.

Major banks are weighing, led by Commonwealth (ASX:CBA) down 3 per cent to $87.78 and NAB (ASX:NAB) down 3 per cent to $25.52. Westpac (ASX:WBC) is trading 1.3 per cent lower at $19.08 and ANZ (ASX:ANZ) is trading 1.3 per cent lower at $21.23. Besides ANZ, the rest are trading at 52 week lows.

On a brighter note, the best performer in the ASX 200 is Zip Co (ASX:ZIP) up 6.9 per cent to 54 cents. This is followed by Evolution Mining (ASX:EVN) up 4.4 per cent to $3.66 and PointsBet (ASX:PBH) up 3.4 per cent to $2.11.

Other gold miners are also higher after the gold price advanced overnight. Newcrest Mining (ASX:NCM) has added 2.7 per cent to $24.54, Northern Star (ASX:NST) is up 3.9 per cent to $8.50 and St Barbara (ASX:SBM) is trading 3.5 per cent higher at $1.18.

Company news

Trajan (ASX:TRJ) is set to acquire Chromatography Research Supplies, a manufacturer of analytical consumables based in the US for $61.9 million (US$43.3 million). Shares are in a trading halt, and last traded at $2.25 yesterday.

Bubs Australia (ASX:BUB) has materially upgraded its FY22 revenue and earnings guidance amid strong demand in China and unanticipated shortages in the US. Shares are trading 2.8 per cent higher at 62 cents.

Link Administration (ASX:LNK) has affirmed the FY22 guidance it provided in February following elevated trading in its shares over the past week. Shares are trading 0.9 per cent lower at $3.32.

Humm (ASX:HUM) and Latitude Financial (ASX:LFS) have mutually agreed to terminate the proposed sale of Humm’s consumer finance business to Latitude after citing major disruption in financial markets. Shares in Humm are trading 13 per cent lower at 50 cents, while shares in Latitude are trading 3.2 per cent lower at $1.36.

Vulcan Energy (ASX:VUL) has provided a progress update for its zero carbon lithium project in Germany. Shares are trading 6.1 per cent lower at $5.38.

Syrah Resources (ASX:SYR) has lifted a temporary suspension on Balama logistics and personnel movements on its primary transport route in Mozambique. Shares are trading 4.3 per cent lower at $1.17.

Lumos Diagnostics (ASX:LDX) has secured a development contract with New Jersey-based Aptatek Biosciences to develop a product to assist with screening for phenylketonuria. Shares are trading 3.5 per cent higher at 14 cents.

Blue Energy (ASX:BLU) has completed civil works for its pilot well gas drilling program in the North Bowen. Shares are trading flat at $0.075.

Commodities and the dollar

Gold is trading at US$1844.51 an ounce.
Iron ore is 1.0 per cent lower at US$129.50 a ton.
Iron ore futures are pointing to a fall of 3.2 per cent.
One Australian dollar is buying 70.30 US cents.

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