- The ASX fell -0.3% on Thursday, driven by losses in tech and real estate
- Traders are pricing in a July Fed rate hike
- Cathie Wood says the world will be talking about deflation soon
The ASX 200 was down -.02% on Thursday, with gains in Energy offset by losses in Real Estate and Tech sectors.
Tech losses were driven by sector heavyweights Xero (ASX:XRO) and Altium (ASX:ALU), which fell by -5% each.
This follows a selloff in the Nasdaq overnight as US traders priced in a July rate hike by the Fed.
Real Estate also extended its losses with majors like Goodman Group (ASX:GMG), Stockland (ASX:SGP) falling 2-4% today.
Meanwhile, energy-related stocks gained as crude oil prices steadied overnight. The oil market was buoyed after a report from the EIA (Energy Information Administration) suggested that the US could see strong travel demand this summer.
Elsewhere, Ark Innovation fund manager Cathie Wood, who’s currently in Sydney, believes that we’ll soon be talking about deflation not inflation.
Speaking at the Morgan Stanley event, Wood says the current shift toward AI and innovation will be deflationary for the world.
“Next year, we’re all going to be talking about deflation and the risks, and the Fed will have not only pivoted, it will be running in the opposite direction,” Wood said today, as quoted by the AFR.
She also said mega tech businesses like Tesla will produce their own AI chips, instead of relying on specialists like Nvidia.
“Many people do not know that Tesla developed its own AI chip and pulled Nvidia out. That was the source of competition for Nvidia that most people are not thinking about.”
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| NHC | New Hope Corp | 5.32 | 6.30 | 4,662,174 | 4,411,347,385 |
| WHC | Whitehaven Coal | 6.47 | 5.37 | 4,531,874 | 5,362,479,268 |
| CPU | Computershare Ltd | 23.15 | 4.56 | 1,487,827 | 13,366,567,499 |
| YAL | Yancoal Aust Ltd | 4.67 | 3.67 | 1,468,245 | 5,941,977,467 |
| SMR | Stanmore Resources | 2.65 | 3.32 | 1,017,723 | 2,307,562,583 |
| BPT | Beach Energy Limited | 1.35 | 3.26 | 9,457,163 | 2,977,140,421 |
| AGL | AGL Energy Limited. | 9.96 | 2.79 | 4,442,836 | 6,518,920,688 |
| MTS | Metcash Limited | 3.59 | 2.72 | 2,031,449 | 3,369,740,191 |
| KAR | Karoon Energy Ltd | 2.00 | 2.56 | 1,540,240 | 1,098,064,693 |
| MAQ | Macquarie Technology | 61.05 | 2.54 | 7,671 | 1,286,613,257 |
| CGC | Costa Group Holdings | 2.68 | 2.49 | 803,600 | 1,212,892,560 |
| APM | APM Human Services | 2.14 | 2.39 | 469,371 | 1,916,910,267 |
| AIZ | Air New Zealand | 0.71 | 2.16 | 481,668 | 2,341,082,699 |
| QBE | QBE Insurance Group | 15.02 | 2.14 | 1,982,457 | 21,933,653,072 |
| NWH | NRW Holdings Limited | 2.38 | 1.93 | 2,139,395 | 1,046,620,925 |
| PDN | Paladin Energy Ltd | 0.68 | 1.88 | 8,112,909 | 1,981,797,387 |
Whitehaven Coal (ASX:WHC) rose 5% as it continued its share buyback in the open market.
Air New Zealand (ASX:AIZ) lifted 2% after providing an earnings guidance update for FY23. The airlines said since the previous update, it has experienced stronger ongoing demand than usually observed at this time of the year.
As such, assuming an average jet fuel price for June of US$89 per barrel, the airline now expects earnings for FY23 to be no less than $580 million. This compares with the prior guidance range given in April of $510 million to $560 million.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| PTM | Platinum Asset | 1.66 | -6.23 | 927,283.00 | $1,035,488,259 |
| PNV | Polynovo Limited | 1.59 | -5.79 | 3,511,929.00 | $1,163,042,185 |
| XRO | Xero Ltd | 105.86 | -5.57 | 541,664.00 | $16,948,774,889 |
| LOV | Lovisa Holdings Ltd | 18.71 | -5.53 | 468,003.00 | $2,135,070,887 |
| BLD | Boral Limited | 3.96 | -5.38 | 1,711,461.00 | $4,610,909,591 |
| CNI | Centuria Capital | 1.64 | -5.33 | 940,068.00 | $1,387,647,438 |
| RSG | Resolute Mining | 0.45 | -5.26 | 11,429,105.00 | $1,011,278,120 |
| ALU | Altium Limited | 36.76 | -4.94 | 200,924.00 | $5,090,793,318 |
| MGR | Mirvac Group | 2.23 | -4.29 | 7,298,391.00 | $9,193,854,306 |
| SEK | Seek Limited | 21.73 | -4.23 | 745,857.00 | $8,082,636,111 |
| DHG | Domain Holdings Aus | 3.19 | -4.07 | 836,021.00 | $2,097,101,748 |
| SGP | Stockland | 4.11 | -3.97 | 3,957,519.00 | $10,217,094,713 |
| GOR | Gold Road Res Ltd | 1.77 | -3.94 | 2,210,394.00 | $1,984,295,359 |
| TLX | Telix Pharmaceutical | 10.54 | -3.83 | 590,272.00 | $3,491,124,847 |
| WBT | Weebit Nano Ltd | 6.62 | -3.78 | 418,322.00 | $1,283,248,505 |
| RMS | Ramelius Resources | 1.43 | -3.72 | 2,420,600.00 | $1,456,605,607 |
Software company Altium (ASX:ALU) dropped -5% after revealing that its Chairman Sam Weiss announced his resignation after 16 years with the company.
Altium says it will conduct a global search for a new Chair for the next phase of its growth, and that Weiss will remain a member of the company’s Board of Directors.