The threat of quantitative tightening extended to Australia on Thursday, with the S&P/ASX 200 (ASX: XJO) being dragged down another 0.6%, almost solely due to the technology sector.
Just three sectors finished higher during the session, being perceived defensive companies in the utilities and staples sector, with the technology sector falling another 3.4%.
The majority of the top 10 losers on the day were from the tech sector, with WiseTech Global Ltd (ASX: WTC) and Altium Limited (ASX: ALU) down 6.6% and 3.8%, respectively.
The lithium sector appears to be tiring as well, as the likes of Novonix Ltd (ASX: NVX) and Liontown Resources Limited (ASX: LTR) fell by more than 6% each despite little news flow.
Magellan share price jumps despite outflows
Magellan Financial Group Ltd (ASX: MFG) was the standout of the large caps, gaining 11.4% after management confirmed only $1.1 billion in further redemptions were received in the final three weeks of March. Assets remained at around $70 billion with the positive response likely investors hopeful that outflows were beginning to slow.
Other companies perceived to provide ‘defensive’ earnings, including Telstra Corporation Ltd (ASX: TLS) and Ramsay Health Care Limited (ASX: RHC), were beneficiaries of a search for safety, gaining 0.8%.
Ardent proceeds received, ASX competition coming
Shares in theme park owner Ardent Leisure Group Ltd (ASX: ALG) gained more than 6% after the group confirmed the sale of its US-domiciled Main Event business to Dave & Busters for US$835 million. The company will use the proceeds to repay debt and return as much as $430 million of 90 cents per share to investors, compared to a current share price of $1.37.
ASX Ltd (ASX: ASX) faced more pressure following another failure in 2022, with global leader CBOE announcing plans to further encroach on the ASX’s exchange monopoly. ASX shares were down close to 1%.
GQG flows continue, Virtus & Western Areas halted
GQG Partners Inc (ASX: GQG) continued its stellar run of investment inflows following a strong quarter of outperformance by its global fund, US$3.4 billion was invested with Australian investors a key contributor. GQG shares jumped 9% but remain 25% below their IPO price.
Both Virtus Health Ltd (ASX: VRT) and Western Areas Ltd (ASX: WSA) remain in trading halts with the former expecting another knockout bid and the latter looking at a renegotiation of the existing bid from IGO Ltd (ASX: IGO).
Meanwhile, economists once again missed Australia’s trade surplus by a long way, with the surplus falling to $7.5 billion, around 30% below the $11 billion predicted. The driver was a jump in fuel imports and higher pricing and an associated reduction in exports.
ASX 200 today
Looking ahead, the ASX 200 is set to open higher this morning, following a slightly positive lead from US stock markets overnight. To find out more, check out my US stock market report.
