A rotation out of high-growth technology and health stocks has knocked the Australian sharemarket from near five-month highs.
The Australian sharemarket eased back on Wednesday after a barnstorming start to the new year, with heavy losses for growth names such as Afterpay, Zip, CSL, Resmed and Xero offsetting a strong run for the banks and miners.
The pullback mirrored overnight movements in the US, where investors were waiting for minutes from the latest US Fed meeting and confirmation that a rate rise – and a wider shift towards traditional policy settings – will be here in matter of months. “Seemingly, the sharp rise in US yields this week has sparked a move from growth to value, or as I put it, from the Nasdaq to the Dow Jones,” OANDA Asia-Pacific senior analyst Jeffrey Halley said.
Afterpay took a beating, dropping 4 per cent to close at $80.51 cents – back to where it was in September 2020. Healius was a rare health sector winner, climbing 0.4 per cent to $5.19, as the demand for coronavirus testing services remains strong.
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