ASX drops as tech drags
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The news: The Australian sharemarket has started the week lower with most sectors falling.
The numbers: The benchmark ASX200 finished down 0.46% to 7,752.5, with eight of 11 sectors finishing in red.
The worst performing sector was IT, down 1.75%, followed by telecommunication services (-1.05%) and healthcare (-1.01%). The largest tech companies all fell including Wisetech (-1.57%), Xero (-1.59%) and Altium (-0.02%).
NextDC also fell, down 5.39%, following the completion of the institutional portion of its $1.32 billion capital raise. Trading of the shares had been halted ahead of the announcement of the raise.
Meanwhile, Gold Road Resources was the worst performer across the ASX 200 finishing 6.87% lower after it confirmed its interest in acquiring Canada’s Greenstone Gold Mines.
Elsewhere, The Star Entertainment Group ended down 3.96% amid the start of public hearings in the second NSW inquiry into the casino's suitability and analysts lowering their target price following the company’s “disappointing” trading update.
The best performing sector was energy, up 0.38%, followed by materials (0.35%) and consumer staples (0.03%). BHP (0.75%), Rio Tinto (3.72%), South32 (4.86%) and Alumina (6.33%) all rose as aluminium, copper, and iron ore all ended higher last week.
Across the wider sharemarket, DroneShield soared 11.7% following the company’s announcement that its first quarter revenues of $16.4 million were 10 times higher year on year.
The Australian dollar is higher buying US64.87 cents.
The context: This week will see the Australian Bureau of Statistics release the latest labour force figures, the continuation of the Senate supermarket prices hearing, and ANZ/Roy Morgan Consumer Sentiment figures.
Offshore, the latest US retail sales and unemployment claims will be released while the Federal Reserve chair Jerome Powell will participate in a fireside chat about economic trends at the Wilson Center’s Washington Forum. China GDP,and industrial production figures will also be released along with the latest UK CPI numbers.
