ASX drops as tech sector slides 4%, tracking Nasdaq selloff
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The news: The Australian sharemarket stemmed losses of nearly 2% in morning trade to end 0.9% lower, after Wall Street indices slumped overnight.
Tech stocks were the worst hit, tracking a 4% fall on the tech-heavy Nasdaq in the US. The ASX tech sector also dropped 4% as its five largest stocks WiseTech (-1.6%), Xero (-5.1%), Technology One (-5.3%), NextDC (-1.7%) and Life360 (-8.6%) all ended lower.
The ASX 200 closed at 7,890.1, with 8 out of 11 sectors finishing in red.
ASX 200 declines:
- Nickel Industries (-18.2%) — Told the ASX that its steep selloff may have been triggered by major shareholder Harum Energy offloading its 4.2% interest in a block trade.
- Ramelius Resources (-16.9%) — Outlined lower-than-expected production guidance for its Mount Magnet mine in Western Australia.
ASX 200 gains:
- Energy (0.8%) — Ended as the second best performing sector, with oil majors Woodside Energy (1.5%) and Santos (1%), and coal miners New Hope (3.2%), Yancoal (2.6%) and Whitehaven (1.7%) all extending gains from Monday.
Other news:
- Star Entertainment (suspended) — Confirmed that it has entered into an exclusivity and process deed with property funds management Salter Brothers Capital, with the potential to provide total debt capacity of up to $940 million.
- Austal (halted) — Announced an institutional placement to raise up to $200 million, as well as a $20 million share purchase plan, to fund the expansion of its shipyard in the US.
- PolyNovo (-7.6%) — Said its chief executive Swami Raote will step down from his role immediately and depart the company on 10 June, amid media reports claiming that company chair David Williams was the subject of an internal bullying probe.
- Brickworks (-6.8%) — Flagged a $55 million non-cash impairment and warned of lower earnings from its North America business as challenging market conditions continue.
- Seek (-1.5%) — Goldman Sachs upgraded its rating on the job listings platform, noting that recent positive trading updates and share price weakness have driven a more balanced risk-reward for the company.
The Australian dollar is buying 62.71 US cents.
