ASX 200 Hits a New 100-Day Low
The S&P/ASX 200 closed sharply lower on Friday, dropping 146.50 points or 1.81% to 7,948.20. This marks a new 100-day low as investor sentiment remained weak. The index has lost 2.74% over the past five days and 2.38% over the last 52 weeks. Investors remain cautious as global economic uncertainties and interest rate concerns weigh on the market.
Figure 1: ASX 200 Chart
Market Sectors Weigh on Performance
The S&P/ASX 200 REIT, Information Technology, and Financials sectors led the decline. The Energy sector dropped 5.9% this week, reaching its lowest level since January 2022. This decline was driven by falling crude oil prices and geopolitical tensions affecting supply chains. Utilities and Consumer Discretionary sectors also posted losses, with retail and infrastructure stocks suffering from weak consumer demand and inflationary pressures.
Top Gainers and Losers
Gainers
- Insignia Financial Ltd (ASX:IFL) rose 9.62% to close at $4.67.
- Elders Ltd (ASX:ELD) gained 3.17%, finishing at $7.15.
- Nuix Ltd (ASX:NXL) climbed 2.45% to $3.35.
Losers
- Polynovo Ltd (ASX:PNV) declined 12.32% to trade at $1.21.
- Macquarie Group Ltd (ASX:MQG) lost 5.18%, closing at $209.08.
- Rea Group Ltd (ASX:REA) fell 5.09% to $243.50.
Also Read: Top Five ASX Materials Stocks Surge Amid Market Volatility
Declining Stocks Outnumber Advancers
Falling stocks outnumbered advancing ones by 707 to 340, with 368 remaining unchanged. Shares in Insignia Financial Ltd reached a three-year high, indicating strong investor confidence in the company’s financial strategy. Meanwhile, Polynovo Ltd hit a 52-week low, reflecting concerns over its future growth prospects and market competition.
This Volatility Index Rises
The S&P/ASX 200 VIX, a measure of market volatility, surged 9.72% to 14.22, reaching a six-month high. The increase suggests heightened uncertainty among investors, with many opting for defensive stocks and lower-risk assets.
Commodity and Currency Movements
Gold Futures (April delivery) fell 0.28% to $2,918.31 per troy ounce as investors reduced their exposure to safe-haven assets. Crude Oil (April delivery) edged up 0.06% to $66.40 per barrel despite concerns over global supply constraints. Brent Oil (May contract) rose 0.14% to $69.56 per barrel, supported by OPEC+ production strategies. AUD/USD slipped 0.35% to 0.63, while AUD/JPY dropped 0.64% to 93.13. The US Dollar Index Futures declined 0.03% to 104.00, reflecting market concerns over inflation and monetary policy adjustments.
It Expected to Face Further Declines
This is likely to face another downturn today, with 200 futures down 0.98% to 8,019 points. Volatile trading in the US has impacted Australian equities, adding to the uncertainty in the local market. Investors remain wary of central bank policies, inflation trends, and global trade developments.
Market Reaction to Economic News
Analysts noted that market weakness persisted despite several positive economic developments. Germany announced a fiscal package exceeding €1 trillion, aimed at stabilising the European economy. China reaffirmed its 5% GDP growth target, with plans to boost AI and autonomous driving to stimulate technological advancements. Australia’s Q4 GDP data indicated that economic growth has stabilised, with government spending and infrastructure projects supporting economic resilience.
Sector Performance Highlights
The Energy sector fell 5.9% this week due to crude oil price fluctuations and shifting demand dynamics. The Financial sector edged lower as major banks struggled during earnings season, with investors closely watching lending trends and credit growth. Commonwealth Bank of Australia (CBA) fell 1.79% to $153.59. Westpac (WBC) declined 0.89% to $31.26. Macquarie Group (MQG) slipped 0.42% to $220.50. ANZ (ANZ) rose 0.07% to $29.38, while National Australia Bank (NAB) gained 0.12% to $34.59. The Technology sector experienced notable declines, reflecting investor caution amid concerns over global economic slowdown and rising interest rates.
It Indices Performance
- S&P/ASX 200: 7,948.2 (-1.81%)
- All Ordinaries: 8,178.5 (-1.78%)
- ASX 200 Resources: 5,089.5 (-1.17%)
- ASX Small Ordinaries: 3,055.5 (-1.26%)
- ASX 100: 6,670.5 (-1.86%)
- ASX 50: 7,775.4 (-1.86%)
- ASX 20: 4,427.6 (-1.92%)
- ASX All Technology Index: 3,629.8 (-3.15%)
Global Trade Impact on It
It 200 has dropped more than 5% from its recent high amid global market volatility. Factors affecting the market include US economic concerns and trade policies, the potential easing of US sanctions on Russia, and OPEC+ decision to raise oil output. The ongoing geopolitical tensions between the US and China also contribute to market instability, as investors monitor potential regulatory changes and their impact on Australian exports.
Conclusion
It remains under pressure amid global uncertainties and market volatility. Investors will monitor economic data, commodity prices, and corporate earnings in the coming days. The market’s performance will depend on external factors and investor sentiment as economic conditions evolve. Market participants are expected to adjust their portfolios to navigate the shifting economic landscape, while analysts continue to assess long-term investment opportunities within key sectors.
