• ASX 200 closed 1.27% lower in a Tech-led rout
  • All 11 sectors were in the red ahead of the RBA meeting tomorrow
  • Property prices in Sydney and Melbourne have dropped for the first time since Covid started in 2020

 

Tech stocks plunged and led the ASX to close 1.3% lower today, following a 4% drop on the tech heavy Nasdaq on Friday.

Investors are adopting a ‘sell now ask later’ approach, ahead of the RBA decision tomorrow.

While most economists predict the RBA will keep rates on hold in May and hike in June, many bond traders have priced in a 25bp hike for tomorrow’s board meeting.

On the ASX, all eleven sectors were in the red today, with Tech (4% down) and Real Estate (3.5% down) leading the rout.

Property related stocks were sold off following the monthly property data released by CoreLogic this morning.

According to the latest data, Australia’s two biggest property markets, Sydney and Melbourne, have experienced decline in prices during the month. Over the last three months, Sydney property prices fell 0.5% to just over $1.1 million, while Melbourne’s prices fell 0.1% to $806,144.

CoreLogic’s Research Director Tim Lawless has warned the market of further troubles ahead.

“With the RBA cash rate set to rise, potentially as early as tomorrow, we are likely to see a further loss of momentum in housing conditions over the remainder of the year and into 2023,” Lawless says.

 

BIG CAP WINNERS

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The travel sector was one of the only few bright spots today, as Qantas (ASX:QAN) announced that its domestic travel numbers for the quarter were rebounding faster than expected.

The airline now expects its second half underlying EBITDA to come in between $450–$550 million, a big improvement on its first half EBITDA loss of $245 million.

 

BIG CAP LOSERS

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Aussie Broadband (ASX:ABB) sank 25% today after a guidance downgrade. The telco expects full year EBITDA to land between $27 and $28 million, after flagging $27m- $30m in February. Its connections guidance was also adjusted to the lower end of the previous estimate, and is now expected between 580,000 and 585,000.

Imugene (ASX:IMU) tanked 15% after announcing the termination of its supply agreement with US-based MSD, a tradename of global giant, Merck & Co.