ASX finishes flat as tech drags
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The news: The Australian sharemarket ended Wednesday almost flat after a mixed session that saw the tech sector fall and financials rise.
The numbers: The benchmark ASX 200 finished 0.12% higher to 7,733.5, with six out of 11 sectors finishing in green.
The best performing sector was financials, up 0.8%, followed by utilities (0.54%) and energy (0.51%). Magellan gained 7.96% as it reported that its funds under management had risen for the fourth consecutive month despite continued net outflows.
The worst performing sector was IT, down 1.44%, followed by consumer staples (-0.59%), and materials (-0.58%). Wisetech fell 2.87% while Xero dropped 0.56%. The tech losses followed falls on Wall Street as its AI-fuelled rally faded.
Financial services technology company Iress ended 6.78% lower after it rejected reported claims that US private equity firm Thoma Bravo was considering buying the company.
Cettire was the worst-performing stock, falling 13.59% after reports that it did not pay goods duties to the federal government. The company has rejected the claims.
The Australian dollar is higher buying US65.18 cents.
The context: While latest figures released today showed 2023 was Australia’s weakest year for economic growth in decades apart from the Covid pandemic, at 1.5%, the sharemarket was little moved.
Overnight will see the start of US Federal Reserve chair Jerome Powell’s two-day congressional testimony that could hint at the central bank’s monetary policy plans.
This follows Super Tuesday primaries that saw US president Joe Biden win all but one of the Democratic contests and Donald Trump win all but one of the Republican contests. The results all but secure the two as their party’s nominees for the 2024 presidential election.
