Shareholders caught wit pants down in market sellfoff. Picture Getty
ASX Large Caps: Shareholders caught with pants down in brutal selloff on Wednesday
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- The ASX plunges on Wednesday following a rout on Wall Street overnight
- US CPI was higher than expected for August
- All 11 ASX sectors sold off
More than $60bn has been wiped out of the Australian stock market today, as the ASX 200 index plummeted by 2.55%.
The selloff came as investors panicked over the worse than expected US CPI figure released overnight.
US investors bolted for the door leaving Wall Street to crumble by 5% after the headline CPI came in at 8.3% in August, higher than the 8.1% median estimate. In July, the rate was 8.5%.
Core CPI, which strips out the volatile food and gasoline, measured 6.3% in August and the month-on-month gain of 0.6% was double what economists had predicted.
No sector was spared today as all 11 ASX sectors finished in the red. It was an especially difficult day for rate sensitive stocks like Real Estate and Tech which lost almost 4% each.
The CPI has also sparked fears over the next Fed move on September 21st, with some experts already calling out a 100bp hike.
All other Asian bourses also fell on Wednesday, with the US yield curve now deeply inverted.
The US 2 year yield rose by 17bp while the 10 year was up by just 5bp, widening the 2yr VS 10yr inversion spread which is usually a signal for an upcoming recession.
The Aussie dollar weakened against the USD, which is now trading at a 20-year high. The strong US dollar is having a negative effect on commodity prices – as most are priced in the currency – with most base metals falling overnight.
In today’s trading, pretty much all metal miners and energy stocks on the ASX lost ground.
Lake Resources (ASX:LKE) was the worst performing large cap, down 15% amid a project dispute at its Kachi Pilot plant. The dispute is over a certain earn-in milestones from its partner on the project.
Meanwhile Bitcoin, which lost 10% in the last 24 hours, is trading steady in Asian hours as it held on to US$20k handle, currently changing hands at US$20,366.
Looking ahead tonight, the EU will release its July industrial production, the UK its August CPI, while in the US the August PPI is due out.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| CPU | Computershare Ltd | 24.635 | 1% | 2,434,708 | $14,755,144,971.84 |
| WHC | Whitehaven Coal | 8.52 | 1% | 6,500,773 | $8,090,058,175.92 |
| APM | APM Human Services | 3.22 | 1% | 372,171 | $2,925,810,407.74 |
| GOLD | ETFS GOLD | 23.49 | 1% | 185,477 | $2,542,759,113.50 |
| AAC | Australian Agricult. | 1.915 | 1% | 437,102 | $1,142,242,985.57 |
| 29M | 29Metalslimited | 2.155 | 2% | 1,202,877 | $1,020,397,108.92 |
| RFF | Rural Funds Group | 2.635 | 1% | 475,463 | $1,003,613,442.92 |
Shares that finished higher were few and far between. Whitehaven Coal (ASX:WHC) was one however, rising 0.7% after continuing its share buy back program in the open market today.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| LKE | Lake Resources | 1.0725 | -16% | 47,085,256 | $1,765,266,610.43 |
| MP1 | Megaport Limited | 7.83 | -10% | 1,261,696 | $1,374,454,849.35 |
| CUV | Clinuvel Pharmaceut. | 21.4 | -8% | 258,732 | $1,143,355,221.32 |
| VUL | Vulcan Energy | 8.13 | -7% | 580,858 | $1,252,750,530.74 |
| PNI | Pinnacle Investment | 9.98 | -7% | 501,896 | $2,137,319,033.85 |
| WAF | West African Res Ltd | 1.2075 | -7% | 4,532,706 | $1,322,262,365.90 |
| GOR | Gold Road Res Ltd | 1.365 | -7% | 5,051,093 | $1,568,886,305.06 |
| BRN | Brainchip Ltd | 0.9425 | -6% | 9,241,065 | $1,727,958,954.72 |
| CHN | Chalice Mining Ltd | 4.315 | -6% | 1,456,584 | $1,727,204,120.46 |
| PDN | Paladin Energy Ltd | 0.89 | -6% | 21,856,432 | $2,814,284,656.89 |
| CCP | Credit Corp Group | 19.23 | -6% | 195,608 | $1,382,421,846.02 |
| RRL | Regis Resources | 1.59 | -6% | 2,246,912 | $1,272,218,683.63 |
| SLR | Silver Lake Resource | 1.2325 | -6% | 3,042,197 | $1,216,722,729.51 |
| ABP | Abacus Property Grp. | 2.62 | -5% | 629,775 | $2,475,431,643.41 |
| DEG | De Grey Mining | 1.1125 | -5% | 6,839,079 | $1,657,685,200.13 |
| ALU | Altium Limited | 36.28 | -5% | 418,489 | $5,035,287,872.25 |
| NXT | Nextdc Limited | 9.6 | -5% | 1,371,571 | $4,621,342,963.16 |
| EVN | Evolution Mining Ltd | 2.22 | -5% | 9,458,889 | $4,293,699,075.90 |
| REH | Reece Limited | 15.04 | -5% | 794,624 | $10,238,849,268.85 |
| NIC | Nickel Industries | 0.94 | -5% | 11,238,701 | $2,703,960,762.03 |
Megaport (ASX:MP1) lost 14% amid the rout, but also after announcing the appointment of a new company, Emily McCaffery, effective today.
Clinuvel Pharma (ASX:CUV) was down 8% as biotechs were sold off.
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