ASX ends afternoon down
Last updated: 4:30pm AEST
Australian shares ended the day in the red, as the gloomy global market outlook reverberates through the local market.
The S&P/ASX200 ended 80.80 points or 1.23% lower, to 6,474.20.
The broader All Ordinaries closed lower, dropping 81.90 points or 1.21% to 6,678.70.
The Information Technology sector was a major loser, dropping just over 2.7% for the day, as investors moved to cut their exposure to the technology sector.
Tech company, Megaport Ltd. (ASX:MP1) shares were down more than 5% at around midday, after hitting a day’s low of AU$7.62. They finished the day down about 4%.
Meanwhile, the Reserve Bank of Australia (RBA) is gearing up to hike its benchmark interest rate on Tuesday. That would mark the central bank’s sixth consecutive rate increase as it attempts to tame inflation.
The Utilities sector is among those sensitive to interest rates changes. AGL Energy (ASX:AGL) and Contact Energy (ASX:CEN) stocks stand out among analysts’ favourites amid the increasing interest rates, according to TipRanks’ insights.
ASX down in afternoon trading
Last updated: 2:08am AEST
The ASX has remained in negative territory in afternoon trading.
The S&P/ASX200 is lower today, dropping 77.50 points or 1.18% to 6,477.50.
The All Ordinaries was lower, down 87.70 points or 1.30% to 6,672.90.
Across the market, sectors remained mixed. Ten of 11 sectors were lower. Materials was the best performing sector, gaining 0.77% and bouncing back from its recent decline.
Tech company, Megaport Ltd. (ASX:MP1) shares were down more than 5% at around midday, after hitting a day’s low of AU$7.62.
The shares fell as investors moved to cut their exposure to the technology sector, with the S&P/ASX 200 Information Technology (XIJ) index dropping more than 2% by midday.
The market has its eyes set towards the Reserve Bank of Australia’s (RBA) interest rate meeting next week, where it is expected to hike its benchmark interest rate for the sixth time in a row. The financial sector is one that typically benefits from higher interest rate rises, through increased profits.
Within the financial sector, TipRanks insights show analysts have a highly favourable view of Capital Holdings Limited (ASX:JDO), Resimac Group Limited (ASX:RMC), and Pepper Money Ltd (ASX:PPM).
Australian shares in negative territory
Last updated: 11:50am AEST
The ASX opened lower this morning amid ongoing recession fears across global markets.
The S&P/ASX200 was lower, dropping 27.10 points or 0.41% to 6,527.90.
The broader All Ordinaries dropped 39.10 points or 0.58% to 6,721.50.
Sectors were mixed. Nine of 11 sectors were lower today.
Materials was the best performing sector, gaining 0.76% and rebounding from its recent decline.
Pre-market breakdown
Australian shares are set to drop upon opening, as global recession fears mount.
ASX futures were down by 0.35%, sitting at $AU6,524.00, at around 6:30am AEST.
It follows a positive day on the ASX yesterday, with shares closing higher, after the Bank of England’s moves to shore up the UK economy resonated across global markets.
However that positive sentiment has largely dissipated. Overnight on Wall Street, stock indices finished Thursday’s trading session in the red.
The Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) decreased 1.54%, 2.11%, and 2.86%, respectively.
Ahead of Monday’s local market opening, the Australian dollar was around 0.4% lower, sitting at about US0.64c.
Brent Crude was down 0.8%, at around US$88.5 a barrel.
Gold was up by about 0.03%, at around $US1660 an ounce.
Meanwhile, Bitcoin was up by around 0.2%, to about AU$29,970.
Market watch
The Reserve Bank of Australia (RBA) is expected to hike its benchmark interest rate for the sixth time in a row next Tuesday. The financial sector is one that typically benefits from higher interest rate rises, through increased profits.
Within the financial sector, TipRanks insights show analysts have a highly favourable view of Capital Holdings Limited (ASX:JDO), Resimac Group Limited (ASX:RMC), and Pepper Money Ltd (ASX:PPM).
