The Overnight Report: Rock'n'Roll
By Greg Peel
There’s not a lot to dissect from yesterday’s sell-off on the ASX, which simply matched Wall Street’s plunge and took no prisoners. Wall Street fell -2.9%, the ASX200 fell -2.9%, and just about every sector fell by a similar amount.
The standouts were energy, down -5.2% on the oil price, reversing rallies over the prior two days when the oil price recovered mildly, and IT, down -4.9%, because in times of trouble the first investments to go are the high risk, high PE growth stories.
Materials (-2.4%) was not spared despite a slight bounce in the iron ore price and further strength in the gold price. A -3.0% fall for the banks equates to a big chunk of index points.
If there was one “outperformer” it was utilities, down a mere -2.0% as a defensive sector.