The S&P/ASX 200 (ASX: XJO) is set to open lower this morning, following a negative lead from US stock markets to finish the week.
Here’s a round-up of what you missed on Friday.
ASX 200 suffers worst fall in three months
The ASX 200 suffered its worst selloff in several months on Friday, falling 1.6% to finish the Easter shortened week.
Every sector was lower barring healthcare, which gained 0.5% as investors flock to their defensive names; CSL Limited (ASX: CSL) and Ramsay Health Care Limited (ASX: RHC) outperformed, gaining 1.7% and 1.5%.
Commodity reversal continues
Materials and mining continue to bear the brunt of the selloff, down 3.3% and 2.5% on Friday, taking the weekly loss to more than 5% each.
On the commodities side, there are multiple issues beginning with supply chain and staff shortages, which are ultimately resulting in higher costs and lower production.
China’s COVID-zero policy is also hurting the likes of BHP Group Ltd (ASX: BHP), which fell 4.4% on Friday as the market continues to digest its underwhelming production update.
Despite this, both OZ Minerals Limited (ASX: OZL) and Mineral Resources Limited (ASX: MIN) reiterated their previous guidance suggesting they are navigating the situation better than most, but Evolution Mining Ltd (ASX: EVN) recently highlighted that 25% of its workforce had contracted COVID-19 at the same time.
Megaport punished, quality & reopening plays shine
Markets are becoming weary of underperforming growth companies, with Megaport Ltd (ASX: MP1) falling another 9.7% on Friday, taking the weekly loss to 25% of the company’s value.
It was a similar story for Block Inc (ASX: SQ2) and Zip Co Ltd (ASX: Z1P) with both losing more than 10% across the week and struggling to find any buyers.
On the other hand, quality companies and reopening beneficiaries remain in demand, as Ramsay jumped 31% on a takeover bid and Qantas Airways Limited (ASX: QAN) soared more than 10% on a surge in bookings.
