The ASX200 appears set to close flattish as futures predicted this morning heading into the final half hour of trades; at 3.35pm AEDT the XJO was up only +0.06%.
Despite a recent rally in copper prices, with gold and iron ore subdued, the materials sector fell back -1.65% on Tuesday, also informed by a steep drop in lithium prices overnight.
But it could be what happened in Korea today that ends up biting the ASX tomorrow – the heavily tech-based KOSPI index fell over -6% intraday on Tuesday as tech stocks fell off, informing a drop in the Australian XTX which was down nearly -4% not far off close.
Worth noting is that the KOSPI is heavily tied to Samsung; but over in Taiwan the microchip godhead stock TSMC also fell down nearly -1.6% at around 3.35pm AEDT.
The risk for the ASX on Wednesday is that this sell-off in Korea rattles NASDAQ investors, but a saving grace could be US Q3 earnings season – it may be that strong results from large names overnight offset any probable contagion downside. Time will tell.
(Also worth keeping in mind is that tomorrow night we get US inflation data, but let’s talk more about that tomorrow.)
At home, ASX-listed Berkeley Energia Ltd stayed on the top gainers board once again, up +21.47% heading into close and inking another strong day of gains.
Up +70% over the last week to 84cps, Berkeley today answered a please explain from the bourse operator – it operates the Salamanca Uranium Project in western Spain and a looming election in that country has investors hopeful a more uranium-friendly leader might get in.
Meanwhile, AGL Ltd also ranked as the 6th biggest gainer of the day up 3.15% heading into close which helped drag up the utilities sector, the best performing basket on the market intraday.
BHP shares were down -0.9% but CBA was up +2% heading into the final 15 minutes of trade; that latter strong performance likely being why the ASX is closing flat today, and not reacting more to pitfalls in the materials sector.
That’s the ASX Today for Tuesday, I’m Jon Davidson, have a great night and we’ll see you tomorrow.
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