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Local shares are adding to Monday’s improvements with the ASX 200 climbing another 59 points or 0.88% to 6799 at lunch on Tuesday.

The Aussie market is experiencing a split in performance between the tech stocks and the rest of the market as investors continue to digest the moves higher for bond yields and the impact on high growth stocks. The likelihood of more US stimulus is also accelerating the rotation out of tech or ‘stay-at-home’ names.

The local tech sector is plunging 4.5% as buy-now pay – later (BNPL) stocks continue recent declines. Afterpay (APT) is leading losses with the stock tumbling 9.5%. APT briefly dipped below $100/share for the first time since December 10 last year and has now fallen roughly 36% from its all-time highs last month.

Fellow BNPL provider, ZipCo (Z1P) is 6% softer today and down ~41% from its record highs in February. Outside of BNPL, accounting software firm, Xero (XRO) is tumbling 6.2% and is having its worst day since March 2020.

The biggest support for the market has been financials with the major banks all advancing. ANZ Bank (ANZ) is leading the big four lenders with a 2.6% improvement while Macquarie Group (MQG) is 2.8% higher. Insurance Australia Group (IAG) which owns NRMA, CGU and SGIO is 7.9% weaker and lagging its insurance peers which are all higher.

Vocus Group (VOC) is among the big winners with the telco group announcing it has received a $3.5 billion takeover offer from a consortium that includes Macquarie Infrastructure and Real Assets (MIRA) and Aware Super for $5.50/share. The offer has also been unanimously recommended by the VOC board. VOC shares are 8.6% higher.

The Aussie Dollar continues its recent slide against the greenback. Even as commodity prices remain supported, the recent bond market volatility is driving USD higher and pushing AUD down. It now buys 76.4 US cents.

In economic news, the NAB Business Survey for February saw both conditions and confidence rise for the month.

Published by CommSec