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ASX closes 0.61% lower: Sell-off in Tech stocks

PUBLISHED

2023-10-26

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The Australian stock market reached its lowest point of the year, primarily driven by a substantial sell-off in technology stocks.

At the closing bell, the S&P/ASX 200 was 0.61 per cent lower at 6,812.30.

Futures

The Dow Jones futures are pointing to a fall of 70 points.

The S&P 500 futures are pointing to a fall of 27 points.

The Nasdaq futures are pointing to a fall of 152.75 points.

The SPI futures are down 38 points.

Best and worst performers

The best-performing sector was Utilities, up 1.3 per cent. The worst-performing sector was Information Technology, down 2.56 per cent.

The best-performing large cap was IDP Education (ASX:IEL), closing 5.88 per cent higher at $22.34. It was followed by shares in Mercury NZ (ASX:MCY) and Meridian Energy (ASX:MEZ).

The worst-performing large cap was Allkem (ASX:AKE), closing 4.45 per cent lower at $10.09. It was followed by shares in REA Group (ASX:REA) and Ampol (ASX:ALD).

Asian markets

Japan's Nikkei has lost 2.07 per cent.

Hong Kong's Hang Seng has lost 0.67 per cent.

China's Shanghai Composite has lost 2.43 per cent.

Company news

Future Metals (ASX:FME, AIM:FME) is pleased to announce it has an updated independent JORC Code Mineral Resource Estimate for its 100% owned Panton Project. The results confirm as the highest grade in Australia and one of the highest grade undeveloped PGM projects globally. Shares closed 16.1 per cent at 3.6 cents.

WA1 Resources (ASX:WA1) announced further exploration results from the 100% owned West Arunta Project in Western Australia. In response, WA1’s Managing Director, Paul Savich, commented: “This latest round of assay results, which includes a number of our highest-grade niobium intercepts to date, further expands the mineralised footprint.” Shares closed 18.4 per cent higher at $6.63.

Marmota (ASX:MEU) announced its decision to re-commence exploration at its Junction Dam Uranium Project to substantially grow the Company’s uranium resource. Marmota Chairman, Dr Colin Rose, said, “The Junction Dam Uranium Resource is one of the most exciting uranium deposits in South Australia. The future for Marmota looks very promising with both Aurora Tank gold and Junction Dam uranium showing the potential to be outstanding deposits.” Shares closed 12.5 per cent higher at 3.6 cents.

Azure Minerals Limited (ASX:AZS) announced that it has entered into a binding Transaction Implementation Deed with SQM Australia, under which it is proposed that SQM will acquire 100% of the shares in Azure by way of a scheme of arrangement for a cash amount of $3.52 per Azure Share. Commenting on the Transaction, Azure’s Managing Director, Tony Rovira, said, “The Transaction presents a great outcome for other stakeholders in Andover, who will benefit from the project being developed by an experienced, well-capitalised and highly regarded company in SQM.” Shares closed 43 per cent higher at $3.49.

Commodities and the dollar

Gold is trading at US$1,999.30 an ounce.

Iron ore is 1.2 per cent higher at US$120.00 a tonne.

Iron ore futures are flat.

Light crude is trading $0.16 lower at US$85.23 a barrel.

One Australian dollar is buying 63.08 US cents.

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