ASX ends flat as tech sector gains
Make us a preferred source
Make us a preferred source on Google
The news: The Australian sharemarket finished flat as investors pulled back early gains ahead of the US releasing its consumer price index (CPI) figures.
The numbers: The benchmark ASX 200 ended higher, just up 0.11% to 7,712.5, with seven out of 11 sectors finishing in green.
The best performing sector was IT, up 1.15% followed by utilities (0.88%) and consumer discretionary (0.61%). Some of the largest tech companies were up including Wisetech (1.6%), Xero (0.91%) and NextDC (0.66%). However, it was Appen that had investors excited as it rocketed 30.1% in early trading before a trading halt. Appen is due to release an announcement answering a price query from the bourse.
While the materials sector finished almost flat (0.03%), Alumina shares jumped 8.09% after its board agreed to a takeover by joint venture partner and US aluminium giant Alcoa and Pilbara Minerals rose 4.25% after announcing a new supply deal with China’s Yahua.
However, BHP (-0.86%), Fortescue (-1.12%), and Rio Tinto (0.29%) continued to suffer pull backs from investors as iron ore prices extended falls due to soft demand in China and bulging inventories.
The worst performing sector was energy, down 0.77%, followed by consumer staples (-0.39%) and industrials (-0.28%). Many of the large energy companies were down including Woodside (-1.19%), Santos (-1.26%), and Yancoal (-8.15%) which traded ex-dividend today.
The Australian dollar is higher buying US66.2 cents.
The context: Tonight at 11.30pm AEDT latest US CPI figures will be released which will help inform the US Federal Reserve as to whether it is still on path to cut interest rates later this year.
