Tech Stocks Take Another Tumble
SYDNEY: Telstra was hit with a whack of more than eight percent on its share price yesterday as the ASX tumbled again, losing no less than $105 billion on mounting recession fears. The AU dollar hovered around US0.60, its lowest level since 2003.
The Government has unveiled tough measures to rein in the coronavirus, warning Australians not to travel overseas and placing a ban on indoor gatherings of more than 100 people.
The ASX was 6.4 percent lower at the close, falling back below 5000 points to finish the session at 4953.
Most stocks were in the red, including tech companies and telcos. Telstra’s fall from grace came after it announced it would offer free data during April to make life easier under the Covid19 restrictions. Vodafone and Optus are offering similar deals.
Kogan was up six percent, apparently because it will sell more TVs and other hardware to the homebound. Reckon jumped 1.8 percent because many of those working from home still have to balance the books.
Of course, the “R” word hasn’t helped (… and, no, it’s not Reckon) as more finance gurus see the spectre of a global recession just around the corner. Unless a magic cure for coronavirus is found soon, and that’s unlikely. – Chris Castellari