ASX closes 1.5% lower as Tech falls by 2.93%

Market Reports

by Peter Milios

On Wednesday, the ASX experienced a significant drop in response to a global sell-off that took place overnight.

At the closing bell, the S&P/ASX 200 was 1.5 per cent lower at 7,195.20.

This decline was mirrored by the All Ordinaries index, which also fell by a similar percentage.

This drop in Australian stock indexes was part of a broader trend across the Asia Pacific region, where stock indexes also ended lower. This downward movement was a result of a sell-off that originated on Wall Street. The sell-off was triggered by fears stemming from strong US retail sales data, which raised concerns that the Federal Reserve might maintain higher interest rates for an extended period.

Specifically, the Hang Seng index, representing Hong Kong's stock market, fell by 1.5%, while Japan's Nikkei 225 index dropped by 1.4% by the close of the Australian market session.

Within Australia, all 11 sectors of the ASX saw declines during the session. The Australian tech sector, which is sensitive to changes in interest rates, performed the worst, experiencing a decline of 2.93%.

This decline in stock indexes was influenced by a combination of factors, including global sell-off pressure triggered by Wall Street's performance, concerns about interest rates, and their potential impact on various sectors, particularly the technology sector. Additionally, anticipation of upcoming earnings reports later in the week contributed to the market's cautious sentiment.

Futures

The Dow Jones futures are pointing to a fall of 8 points.

The S&P 500 futures are pointing to a fall of 2.25 points.

The Nasdaq futures are pointing to a rise of 5 points.

The SPI futures are down 105 points.

Best and worst performers

The best-performing sector was REITs, up 0.09 per cent. The worst-performing sector was Information Technology, down 2.93 per cent.

The best-performing large cap was Aurizon Holdings (ASX:AZJ), closing 1.38 per cent higher at $3.67. It was followed by shares in Bendigo and Adelaide Bank (ASX:BEN) and Whitehaven Coal (ASX:WHC).

The worst-performing large cap was SEEK (ASX:SEK), closing 4.62 per cent lower at $23.52. It was followed by shares in Endeavour Group (ASX:EDV) and WiseTech Global (ASX:WTC).

Asian markets

Japan's Nikkei has lost 1.36 per cent.

Hong Kong's Hang Seng has lost 1.39 per cent.

China's Shanghai Composite has lost 1.14 per cent.

Company news

AML3D (ASX:AL3) has received a $2M order from US Navy for submarine parts. In Response, interim CEO Sean Ebert said: “AML3D’s focus is on the US defence, aviation and maritime sectors and the Company is well positioned to access the many opportunities that will be created as a result of the AUKUS Alliance, in the US, Australia and Europe.” Shares closed 22.2 per cent higher at 8 cents.

Imugene Limited (ASX:IMU) announced that it has entered into an agreement with Precision Biosciences, Inc. (NASDAQ GS: DTIL) to acquire a worldwide exclusive licence to Precision’s off the shelf CD19 CAR T cell therapy. In response, Imugene MD & CEO, Ms Leslie Chong said, “We plan to complete the ongoing multi-centre Phase 1b study using the recommended Phase 2 regimen as we prepare for the start of a potential registrational study at the earliest opportunity.” Shares are on a trading halt and last traded at 9.4 cents.

Loyal Lithium (ASX:LLI) announced that multiple spodumene bearing pegmatite dykes discovered at the Trieste Lithium project, James Bay, Canada. In response, Mr. Adam Ritchie, commented: “The discovery of five spodumene rich dykes gives us great confidence as we accelerate our exploration activities and prepare for drilling.” Shares closed 50 per cent higher at 68 cents.

Commodities and the dollar

Gold is trading at US$1934.80 an ounce.

Iron ore is 0.6 per cent higher at US$104.10 a tonne.

Iron ore futures are pointing to a 0.13 per cent rise.

One Australian dollar is buying 64.44 US cents. 

Peter Milios

Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.

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