• ASX was down for third consecutive day
  • Australia CPI was higher than expected at 5.1%
  • Tech, consumer staples got smashed in a broad brushed selloff 

 

ASX Tech stocks tumbled by over 2% today, as the possibility of a May rate hike gains momentum following a high CPI print of 5.1%.

The Tech sector dragged down the ASX 200 to its third consecutive day of losses, with the benchmark closing lower by 0.78%. The closing level proved to be a consolation for investors as the index was down by as much as 3% at one point during the day.

Today’s selloff wasn’t limited to Tech; traditional defensive sectors were also routed with Healthcare and Consumer Staples falling more than 1% each.

Today’s headline inflation of 5.1% was much higher than market consensus, which had predicted an increase of 4.6%. Underlying inflation, which is the RBA’s preferred measure, also surged to 3.7%, blowing past RBA’s target band of 2-3%.

It was the highest increase in the CPI recorded since the year 2000, making the case stronger for an RBA rate increase in May, as opposed to a June hike as predicted earlier.

Energy was the only glowing sector today amid a sea of red, lifting by 1%, as crude oil prices rebounded by 3% overnight.

 

BIG CAP WINNERS

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Graphite miner Syrah Resources (ASX:SYR) surged 11% after citing an 80% increase in global EV sales in the first quarter. The company also reported a significant order pipeline, with more than 90 kilotons of natural graphite orders due for sale in the coming quarters.

 

BIG CAP LOSERS

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Northern Star (ASX:NST) slumped 5% after it lowered its FY22 production from its Pogo gold mine. Overall, NST maintained its total production guidance from its three mines, but has downgraded the Pogo mine to 205-220 koz (from 220-250 koz).