It was an eventful day in global markets, with the US indices initially trading higher after learning that the Federal Reserve was considering increasing the cash rate for the first time in many years in March this year.
The market turned quickly, with the sell-off in technology accelerating once again.
The S&P/ASX 200 (ASX: XJO) was not immune, with the market initially opening higher, only to fall as much as 3% lower and ultimately finish down 1.8%.
The high-multiple retailing and technology sectors continued to underperform, down 5% and 3.7%, respectively.
The energy and utilities sectors were the only winners, gaining 2.1% and 1.2%, after the oil price exceeded US$90 per barrel for the first time in seven years. Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) gained 8.8% and 3.6% on the news.
The worst performers remain company-specific, with Evolution Mining Ltd (ASX: EVN) and Silver Lake Resources Limited (ASX: SLR) down 11% each. OZ Minerals Limited (ASX: OZL) also weakened after reporting copper production at the lower end of guidance and suggesting a weaker year in 2022.
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Kogan share price tumbles again
Kogan.com Ltd’s (ASX: KGN) collapse has continued with the share price down another 12.3% on Thursday.
After being dumped from the ASX 200, the Kogan share price is now down 75% from a 2020-high of $24 per share.
Kogan share price chart
The same issues are afflicting the company, with first-half sales and revenue exceeding expectations, but gross profit being heavily impacted by ‘supply chain’ issues and fluctuations in demand after overstocking in 2021.
The company reached 4 million active customers, but growth has slowed to just 10% for new members and 9% for sales.
Premier Investments shows the barbell of retail
Premier Investments Limited (ASX: PMV) exhibited the other end of the ASX retail sector, with shares gaining 2.1% after announcing a 0.5% sales increase for the first half.
Whilst nothing to write home about, it was a great result given the significant 2020 comparables. Online sales continue to grow strongly, moving 27% higher and now representing 25% of all sales.
Offering an insight into the challenge facing the property sector, the company has exited four stores on the basis that the landlords were seeking ‘unrealistic’ rents.
ASX 200 today
Looking ahead, the ASX 200 is expected to push higher at the open this morning. This comes following another choppy session in US markets as volatility continues. To find out more, check out my US stock market report.
