Tech stocks drag ASX lower: Aus shares down 0.9% at noon

Market Reports

by Katrina Bullock

After a marginal rise at the open, the ASX200 sunk throughout the morning and is trading 0.9 per cent lower at noon. Surprisingly, the Information Technology sector is leading the losses.

The S&P/ASX 200 index is 52 points down at 6,074. On the futures market the SPI is 43 points lower.

Broker moves

Ord Minnett rates Experience Co (ASX:EXP) as a Buy, with a 12-month price target of 21 cents. The net loss the company experienced in the 2020 financial year was worse than the broker expected. However, Ord Minnett notes that the company has repositioned the business to survive the crisis and pursue growth opportunities. It believes the company’s financial position is now solid and well-placed for a recovery in inbound holiday travel to Australia. Shares in Experience Co (ASX:EXP) is trading flat at 15 cents.

Company news

Village Roadshow (ASX:VRL) has reported a net loss after tax of $122.6 million, after revenue dropped from $980.5 million to $732.4 million. The impact of the Covid shut down and social distancing restrictions has greatly affected the cinema and theme park operator. All parks and the majority of cinemas (except theatres in Victoria) re-opened in June / July 2020, and are currently operating at reduced capacity to comply with social distancing regulations in the relevant states. The company continues to operate on a negative cash basis and awaits BGH’s impending takeover. Shares in Roadshow (ASX:VRL)are trading 1.9 per cent lower at $2.08 at noon.

Best and worst performers

The best-performing sector is Financials, adding 0.4 per cent, while the worst performing sector is Information Technology, shedding 2.2 per cent.

The best performing stock in the S&P/ASX 200 is Polynovo (ASX:PNV), rising 8.7 per cent to $2.19, followed by shares in Avita Therapeutics (ASX:AVH) and Costa Group (ASX:CGC).

The worst performing stock in the S&P/ASX 200 is Appen (ASX:APX), dropping 7.7 per cent to $35.68, followed by shares in Whitehaven Coal (ASX:WHC) and Clinuvel Pharmaceuticals (ASX:CUV).

Commodities and the dollar

Gold is trading at US$1,936 an ounce.
The iron ore price fell 1.6 per cent to US$122.22
Iron ore futures are pointing to a rise of 0.4 per cent.
One Australian dollar is buying 72.70 US cents.