• ASX closes Friday 1.85% lower, almost 8% for the week
  • It follows a selloff in global equity markets on recession concerns
  • Australian Agricultural (AAC) rises 7% after Andrew Forrest raises his stake through Tattarang

 

Local shares dived by 2% on Friday and inched closer towards bear territory, as a selloff in equities spreads globally.

The ASX 200 index is now down by 15% from its last peak in April, and a further 5% selloff would officially tip it into a bear market.

Overnight, Wall Street and European markets were crushed as rate increases around the world stoked worries of a global recession. The Bank of England and Swiss National Bank (SNB) became the latest central banks to hike their rates, after both increased rates by 25bp and 50bp respectively.

“It was probably the SNB that broke the camel’s back, because if the Swiss are worried about inflation, we all should be,” said Oanda market analyst Jeff Halley.

“My overall take on the state of play for markets at the moment is that even the most ardent buy-the-dipper in the equity space is starting to realise inflation is a threat, with central bank banks prepared to hike the world into a slowdown and possible recession to get on top of it,” Halley added.

Closer to home, a robust jobs report on Thursday that saw 61,000 new jobs added vs 25,000 consensus could also see the RBA make a back-to-back 50bps rate hike in July.

Governor Philip Lowe’s speech on Monday is expected to give investors more clues to his current state of thinking.

On the ASX today, 10 out of 11 sectors fell, with Staples the only one to have escaped the slaughter. Energy, Mining, Tech, and Financials all slipped by around 2-3%.

 

BIG CAP WINNERS

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Code Name Price % Change Volume Market Cap
NST Northern Star 8.60 5% 6,642,710 $9,530,732,496
EVN Evolution Mining Ltd 3.71 6% 11,729,257 $6,415,526,891
IFT Infratil Limited 7.17 5% 76,837 $4,960,192,725
A2M The A2 Milk Company 4.18 4% 4,957,810 $2,982,062,677
GNE Genesis Energy Ltd 2.33 7% 39,622 $2,278,405,796
SLR Silver Lake Resource 1.63 7% 6,397,367 $1,423,158,495
RRL Regis Resources 1.895 4% 7,117,093 $1,369,918,981
CMM Capricorn Metals 3.695 4% 1,220,181 $1,322,826,341
PPH Pushpay Holdings Ltd 1.1375 3% 797,980 $1,254,965,440
TLX Telix Pharmaceutical 4.05 4% 891,832 $1,219,908,464
AAC Australian Agricult. 2.21 9% 1,410,138 $1,217,588,829
SDR Siteminder 4.55 5% 1,190,240 $1,182,302,625

Australian Agricultural (ASX:AAC) rose 8% as Twiggy Forrest’s Tattarang increased its stake in the company from 7.90% to 17.41%.

 

BIG CAP LOSERS

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Code Name Price % Change Volume Market Cap
GUD G.U.D. Holdings 7.73 -20% 3,829,887 $1,353,998,029
LKE Lake Resources 1.54 -8% 19,089,176 $2,241,864,155
KAR Karoon Energy Ltd 1.7425 -7% 5,576,834 $1,047,906,196
HUB HUB24 Ltd 18.035 -7% 358,524 $1,557,131,562
HVN Harvey Norman 3.54 -7% 5,603,224 $4,734,825,285
SQ2 Block 82.01 -7% 724,147 $3,629,362,579
OZL OZ Minerals 20.1 -6% 3,378,709 $7,166,891,285
S32 South32 Limited 4.15 -6% 21,081,682 $20,491,356,161
CKF Collins Foods Ltd 8.33 -6% 511,342 $1,037,614,383
CIA Champion Iron Ltd 6.02 -6% 2,711,935 $3,313,405,125
GRR Grange Resources. 1.42 -6% 3,724,077 $1,747,581,434
XRO Xero Ltd 73.33 -6% 743,272 $11,644,124,148
SGM Sims Limited 14.49 -6% 2,206,919 $2,991,711,279
CCP Credit Corp Group 19 -6% 600,125 $1,364,785,453
ILU Iluka Resources 8.995 -6% 2,337,136 $4,038,730,975
APE Eagers Automotive 8.79 -5% 849,516 $2,389,477,886
WHC Whitehaven Coal 5.04 -5% 13,785,702 $5,221,365,374
CXO Core Lithium 1.145 -5% 24,546,513 $2,096,147,280
AKE Allkem Limited 9.73 -5% 4,453,214 $6,555,125,124
AUB AUB Group Ltd 16.27 -5% 377,850 $1,587,588,785

GUD Holdings (ASX:GUD) crashed by 20% after a downbeat guidance.

The company, which owns a portfolio of assets in the automotive aftermarket and water products sectors, has downgraded its full year FY22 underlying operating earnings to $147m, down from its previous guidance of $155m ~ $160m.