The Australian stock market faced a wave of selling pressure, resulting in a broad decline with the ASX 200 index plummeting by 140 points, translating to a substantial 1.81% drop on Tuesday. The All Ords suffered a similar fate with a 1.84% drop, down 147.10 points. The last 5 days has seen a reversal in sentiment across global markets, with a 2.71% downturn for the benchmark Aussie index more than wiping out earlier gains, falling 218.90 points. With both the indexes red through 2024, we wait to see if the sentiment shift is temporary, or will become more entrenched.
Not a single sector managed to escape the day’s downturn, painting a grim picture for those reviewing their investment positions across varied locations. Among the hardest hit on the ASX were Consumer Discretionary stocks and Real Estate Investment Trusts sectors, which suffered the brunt of the selloff. This bleak landscape also mirrored the ominous trends in technology-heavy indices abroad, with the NASDAQ Composite exhibiting worrying technical indicators. Technical analysts pointed out a short-term downtrend in the Nasdaq, characterised by lower peaks and troughs.
Despite the bearish sentiment, there were isolated pockets of resilience. Notably, ASX-listed companies like Integral Diagnostics (ASX:IDX) up 2.11%, BWP Trust (ASX:BWP) gained 2.08%, Sandfire Resources (ASX:SFR) rose by 1.10% and IPH Ltd (ASX:IPH) up by 1.15%. All four bucked the trend, managing to deliver positive returns amidst the market turmoil.
Conversely, certain stocks could not defy the gravity of the broader market sentiment, with Piedmont Lithium Inc (ASX:PLL) down 22.81%, The Star Entertainment Group (ASX:SGR) down 14.43%, and Resolute Mining (ASX:RSG) fell 12.24%, Zip co Ltd (ASX:ZIP) fell 10.90% . These companies reflected more pronounced downtrends, adding to investor woes on the day.
Other stocks in the news today include Woolworths (ASX: WOW), with the company having hit headlines as their CEO (Brad Banducci) was given a warning of being found in contempt of court for not answering a question on ROE. The warning over a ruling that could land Banducci behind bars for six months hit newswires as the stock ended down 1.15% on the day.
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It is a complex market to navigate today without seeing red, but these days do come, especially as global volatility rises. The tensions in the middle east did little to alleviate the concerns surrounding inflation, or the pause in other global markets. The day ended with a sombre reflection as the All Ords and the ASX 200 index both stumbled back into the red year to date. All eyes will be on how market participants respond in the coming days, with the hope that resiliency within some sectors may inspire a broader market recovery. With the US indices trading significantly milder today, we can look back to local markets in the morning with the hope that some of the global sentiment levels off.
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