Recession Fear: Oz Tech Shares Follow The Leaders Down – Again
Australian technology shares yesterday traded sharply lower for the second day in a row, reflecting rising fears of a global recession, kicked off by the US recording its worst manufacturing figures in more than 10 years, and worse-than-expected private sector job figures.
The figures point to a faltering America that is starting to hurt amid the ongoing US-China trade war.
Australian stocks were hit across the board, with nearly every company on the ASX 200 in the red, except for gold miners. The ASX 200 has lost about A$70 billion over two trading sessions.
Most local tech stocks followed the trend plunging by between two and three percent, in line with losses in other sectors.
Kogan was down 2.6 percent after this week announcing its Kogan Black credit card aimed at boosting sales (CDN, Thursday), while NextDC dropped 2.8 percent, Dicker Data was down 2.1 percent and JB Hi-Fi managed to weather the worst of the storm, falling just 0.38 percent. Telstra took a 3.1 percent hit and Afterpay also fell 3 percent.
Other losers included Reckon, Technlogy One, Vocus, Xero, Wisetech and MacTel.
Adding to trade concerns, the US has announced it will impose US$7.5 billion worth of tariffs on European Union imports, just two weeks after the World Trade Organisation ruled that the EU had been granting illegal subsidies to Airbus to give it an unfair advantage over Boeing.