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.  

Leave a comment

Your email address will not be published. Required fields are marked *

  • Related
    Daily Market Update
    Professional investors turning to illiquidity and alternatives in search of returns

    Leading investment consultancy bFinance this week released its Insurer Investment Survey, which seeks to understand the investment intentions of the holders of about US$5 trillion ($6.9 trillion) in global capital. With insurance statutory funds among the most powerful investors in the world, the survey provided unique insights into their intentions and strategy. Running a profitable…

    Drew Meredith | 20th Jan 2022 | More
    Daily Market Update
    Dixon Advisory files for voluntary administration

    On Wednesday, Dixon Advisory & Superannuation Services, the division of ASX-listed E&P Financial Group (ASX:EP1) that was focused on delivering financial advice to high-net-worth clients for several decades, filed for voluntary administration. This marks the beginning of the end for what initially appeared to be an Australian success story.  According to the ASX announcement, administrators…

    Drew Meredith | 20th Jan 2022 | More
    Daily Market Update
    How will Your Future, Your Super reforms impact ESG investing?

    While the government’s Your Future, Your Super (YFYS) reform package, which took effect last July, has been widely derided by the industry, it is the first step in a move to requiring the industry to improve its efficiency, transparency and accountability. One of the unexpected consequences of the YFYS changes is the fact that it…

    Ishan Dan | 20th Jan 2022 | More
    Evergreen ratings highlights new venture capital prospect
    Ishan Dan | 18th Nov 2021 | More
    IN60 with Andre Roberts from Invesco
    The Inside Adviser | 18th Oct 2021 | More
    ‘It’s never been a better environment to start shorting stocks’
    Lachlan Maddock | 22nd Nov 2021 | More
    What does High Conviction mean?
    Ishan Dan | 18th Mar 2021 | More
    As adviser numbers dwindle, pressure turns to industry funds
    Drew Meredith | 6th Dec 2021 | More
    The Principals’ Community forges its own path
    Staff Writer | 18th Nov 2021 | More