Tech stocks drag the market down: ASX closed 0.9% lower

Market Reports

by Rachael Jones

It has been a negative day of trade for the Australian share market. After opening in the red the local bourse failed to gain momentum. Tech stocks dragged on the market today - Appen (ASX:APX) shares are down over 12 per cent. At the closing bell the S&P/ASX 200 index closed 61 points lower, or 0.9 per cent lower to finish at 6,778.

Futures market

Dow futures are suggesting a fall of 85 points.
S&P 500 futures are eyeing a dip of 13 points.
The Nasdaq futures are eyeing fall of 100 points.
And the ASX200 futures are eyeing a 66 point fall tomorrow morning

Economic news

Annual wage growth has remained steady at the historically low rate of 1.4 per cent ahead of expectations.

Meanwhile in construction, the seasonally adjusted estimate for total work done fell 0.9 per cent in the December quarter. Building work done rose 0.6 per cent.

Company news

Appen (ASX:APX) posted a 12 per cent increase in revenue to $599.9 million and an 8 per cent rise in EBITDA to $108.6 million. Looking ahead, Appen is forecasting EBITDA growth of 18 per cent to 28 per cent in FY 2021. China revenue growing at 60 per cent quarter on quarter. Shares in Appen (ASX:APX) closed 12.1 per cent lower at $17.81.

Scentre Group (AXS:SCG) report a full-year loss of $3.7 billion, from a profit of $1.18 billion a year ago. The group owns and operates nearly 40 Westfield branded shopping centres.
Stay-at-home consumers have helped push Woolworth’s (ASX:WOW) profit’s up 15.9 per cent to $1.14 billion for the half year.

In the first half FY2021 Bega Cheese (ASX:BGA) reported profit after tax was $21.7 million, an increase of $13.2 million or 154 per cent on the last half.

Best and worst performers of the day

The best performing sector was Consumer Staples adding 0.8 per cent while the worst performing sector was Information Technology, shedding 2.7 per cent.

The best performing stock in the S&P/ASX 200 was Nine Entertainment Co Holdings (ASX:NEC), rising 9.7 per cent to close at $2.93. Shares in IDP Education (ASX:IEL) and Platinum Asset Management (ASX:PTM) followed higher.

The worst performing stock in the S&P/ASX 200 was Appen (ASX:APX), dropping 12.1 per cent to close at $17.81. Shares in Nanosonics (ASX:NAN) and Seek (ASX:SEK) followed lower.

Asian markets

Japan’s Nikkei has lost 1.1 per cent, Hong Kong’s Hang Seng has lost 2.7 per cent and the Shanghai Composite has lost 1.6 per cent.

Commodities and the dollar

Gold is trading at US$1,810 an ounce.
Iron ore price fell 1.7 per cent to US$173.05.
Its futures are pointing to a fall of 0.5 per cent.
Light crude is US$0.33 down at US$57.10 barrel.
One Australian dollar is buying 79.14 US cents.

 

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