ASX falls on tech selloff
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The news: The Australian sharemarket ended lower due to a tech selloff that mirrored falls on the Nasdaq, which were a response to the US considering measures that could inhibit China’s access to semiconductor manufacturers.
The numbers: The benchmark ASX 200 fell 0.27% to end at 8,036.5, with seven out of 11 sectors finishing in red.
The worst sector was IT, down 3.39%, followed by telecommunication services (-1.2%). Large tech companies WiseTech (-6.55%), NextDC (-4.55%), and Xero (-2.9%) all recorded losses following the US selloff.
Domino’s Pizza Enterprises slumped 8.3% and was the worst performer across the ASX 200 after announcing that it would close 80 low volume stores in Japan and up to 30 in France.
Telix Pharmaceuticals fell 2.05%, despite lifting its full-year guidance on the back of a strong second quarter driven by its prostate cancer imaging product Illucix.
Meanwhile, Fortescue ended 1.48% lower after announcing 700 job cuts and despite Macquarie analysts upgrading its price target. However, they warned the move could erode its share price premium over competitors.
Genesis Minerals dropped 0.93% after it reported that it had met the midpoint of its production guidance and had begun preparations to reopen its Laverton mill.
The best performing sector was utilities, up 0.35%, followed by healthcare (0.28%).
Evolution Mining, up 2.76%, was the best performer across the ASX 200, following news that it had achieved record production volumes.
Elsewhere, Accent Group soared 11.22% after announcing that it would close 17 underperforming Glue Store locations that did not achieve "required returns".
Zip shares climbed 9.66% after it closed a capital raise that will be used to pay down debt, with analysts from UBS, Citi and RBC bullish on the stock.
SkyCity gained 2.56% despite announcing it had again lowered its earnings expectations due to temporarily closing its Auckland casino as part of an agreement with regulators.
Meanwhile, Santos ended flat after it reported steady sales and production for the June quarter as assets returned to service following weather outages and planned maintenance activities.
The Australian dollar is higher, buying 67.39 US cents.
The context: Tonight will see the European Central Bank make its next monetary policy decision, along with the release of the latest US unemployment claims data.
In the local market, Beach Energy and Whitehaven Coal will both release their quarterly results on Friday.
