Home / Daily Market Update / ASX falls 0.7%, Afterpay closes at 7-month low

ASX falls 0.7%, Afterpay closes at 7-month low

Daily Market Update

Tech pulls market lower, deals galore across travel, property sectors 

The technology sector once again dragged the market lower, falling 2.6 per cent and pulling the market down 0.7 per cent along with it.

The biggest detractors were Afterpay (ASX: APT) and Zip Co (ASX: Z1P) which fell 3.1 and 6.9 per cent respectively as the flood out of high growth tech companies continues apace.

  • The utilities sector was the only real winner, gaining 0.3 per cent behind AGL (ASX: AGL) and Origin Energy (ASX: ORG) which were 2.4 and 0.2 per cent higher respectively.

    Shares in Helloworld (ASX: HLO) gained 16.2 per cent after Corporate Travel (ASX: CTD) announced a deal to buy the company’s corporate travel division for $175 million as they seek to bulk up their operations.

    Wesfarmers (ASX: WES) doubled down on their bid for Australian Pharmaceutical Industries (ASX: API) stating they would use their 19.3 per cent shareholding as a blocking stake against Woolworths (ASX: WOW) higher bid and suggesting pharmacists were on their side. 

    Qube sells Moorebank, new CEO at Challenger,  

    Shares in Challenger (ASX: CGF) were 1.2 per cent higher, bucking the market trend after the board announced Nick Hamilton would take on the role of CEO going forward.

    He moves from the high performing funds management division, and has been well received by shareholders.

    Qube Holdings (ASX: QUB) entered a short trading halt before announcing the sale of the property and warehousing at the Moorebank Terminal in NSW to Logos for $1.67 billion; they must still deliver on an agreed rail terminal.

    In a similar trend to overseas, Virgin Money (ASX: VUK) topped the large cap end of the market, gaining 4.1 per cent on hopes that higher interest rates in the UK and Europe will boost profit margins in 2022.

    CSL remains in a trading halt as the company digests the acquisition of Vifor Pharma and seeks to finalise their capital raising, the largest for the market this year. 

    Fed accelerates taper, flags more rate hikes, markets rally 

    It was all about the Federal Reserve overnight with what will likely be the last major economic announcement until close to February next year.

    As expected, the central bank will accelerate their tapering of bond purchases to US$30 billion per month, meaning QE will be all but finished by March rather than June.

    At the same time, board members of the Fed increased their votes on 2022 rate hikes from one in September to at least three, however, a lot of water will go under the bridge by then.

    Inflation expectations were increased from 2.2 to 2.6 per cent and growth expectations cut.

    This news came as retail sales numbers slumped, growing just 0.3 per cent in November, well below expectations.

    Despite predictions that rate hikes would lead to a market sell-off, all three benchmarks reversed losses, the Dow finishing 1.1 per cent, S&P500 1.6 and Nasdaq 2.2.

    Company-specific releases have slowed, by the electric vehicle market behind Tesla (NYSE: TSLA) and Rivian (NASDAQ: RIVN) continued to be sold off due to their high growth profiles.

    The more cyclical business, even in the tech space performed well, with semiconductor makers, AMD (NASDAQ: AMD) and NVIDIA (NYSE: NVDA) up more than 2 per cent each.  


    Related
    ASIC levy review targets adviser ‘time-lag’ issue

    The review will consider “the consequences of time lags between regulatory action and cost allocation”, the terms of reference states.

    Tahn Sharpe | 10th Aug 2022 | More
    August reporting season has profit margins and managing expectations in focus

    An action-packed month of record dividends, soaring energy prices and rising inflation are all expected to be key trends this earnings season.

    Ishan Dan | 10th Aug 2022 | More
    ‘Volatility provides opportunities for income investors: Franklin Templeton

    Following two years of volatility, triggered by a global pandemic, supply-chain disruptions and the release of massive stimulus that followed, the financial system is in uncharted territory. Inflation is at highs not seen in four decades; bonds have fallen with equities, invalidating the traditional 60/40 portfolio; and, to add a spanner in the works, a…

    Ishan Dan | 5th Aug 2022 | More
    Popular
    1
    Is The Lottery Corp (ASX: TLC) the best ASX dividend share?
    Lachlan Buur-Jensen | 3rd Jun 2022 | More
    2
    Australian housing set to tank like New Zealand
    Ishan Dan | 13th Jul 2022 | More
    3
    Which stocks made the cut for the “recession-proof” portfolio?
    Ishan Dan | 1st Jul 2022 | More
    4
    Your guide to the ANZ, Suncorp deal and capital raising
    Lachlan Buur-Jensen | 22nd Jul 2022 | More
    5
    What will the corporate dividends look like in 2022-23?
    Ishan Dan | 13th Jul 2022 | More