The Aussie sharemarket had its worst week since March 2020, with the ASX 200 extending its losing streak to a sixth straight day after declining by another 1.8 per cent or 116.3 pts, to 6474.8. Around 40 per cent of companies on the ASX 200 today traded at 52-week lows. The Consumer Staples sector was the only sector to finish in positive territory. The index was weighed by a 2.4 per cent decline in the Tech sector and an 2.8 per cent fall in the Materials sector. In fact, six of 11 sectors have fallen for at least six straight days.
For the week, the ASX 200 finished 6.6 per cent lower – its worst week in around 2¼ years. All sectors fell for the fourth time this year, with each sector losing on average 6.0 per cent. The interestrate sensitive Tech sector fell most, following a series of rate hikes by central banks globally. And the Materials sector shed 7.7 per cent after iron ore prices retreated for a sixth straight day.
In economic news, the Bank of England (BoE) raised its interest rate by 25 basis points to a 13-year high of 1.25 per cent overnight. This is the BoE’s fifth straight rate hike.
The Bank of Japan (BoJ), as expected, left its interest rate targetunchanged. The BoJ is however, at odds with the rest of the world, with most central banks increasing interest rates to tame surging
inflation. The Japanese yen tumbled by as much as 1.7 per cent after the announcement, despite being around 24-year lows earlier in the week.
In the week ahead, speeches from the Reserve Bank (RBA) Governor Philip Lowe and a semi-annual testimony by the US Federal Reserve chair, Jerome Powell are scheduled.
In company news today, Link Administration Holdings (LNK) released a trading update. In the update, LNK reaffirmed its FY22 guidance – a ‘low single digit percentage’ increase in revenues, and annual growth in its operating EBIT of ‘at least 5 per cent’. Thiscomes after LNK informed investors yesterday, that the ACCC‘outlined significant preliminary competition concerns’ with Dye & Durham’s (D&D) proposed acquisition of LNK. LNK climbed 1.5 percent today but was still the fourth worst performer this week.
Shares of Bubs Australia (BUB) rose 9.1 per cent today, after flagging its expectation for FY22 gross revenue to ‘exceed $100 million. Bubs also forecasts its 1H22 underlying EBITDA to increase by ‘at least 100 per cent’.
6.7bn shares were traded worth a heavy $18.4bn. 483 stocks rose, 1,008 fell & 373 finished unchanged.
In the US, Federal Reserve Chair Jerome Powell delivers a speech. Industrial production data and the Conference Board leading index are due.
Originally published by Divik Nigam – (Author) CommSec