As it happened: ASX edges ahead despite tech plunge, Metcash up 6.2%

An unsteady lead from Wall Street, confusion over Omicron’s potency, and softening iron ore prices weighed on the ASX on Monday, although supermarkets and retailers enjoyed a boost.

The benchmark S&P/ASX200 ended the day 3.9 points higher, up 0.05 per cent, at 7245.1 points.

Volatility continues to haunt markets with the Chicago Board of Options Exchange Volatility Index, known as the VIX, hitting ten month highs on Friday at 43.8 points.

The technology-heavy Nasdaq was now about 6 per cent lower than its 19 November high, dragging on Australia’s technology sector, which underperformed on Monday.

Chief investment officer at Australian Eagle Asset Management, Sean Sequeira, said Monday’s session was impacted by profit taking with several stocks reaching historical highs last week.

He noted there was pressure on the tech sector as the economy cycled into a higher-interest rating environment.

“Certainly technology stocks do have potential to continue to grow, it’s not something we will throw away too easily,” said Mr Sequeira, who holds Xero and Altium in his portfolio.

Nearmap shares dropped 7.1 per cent on Monday and Afterpay shares hit a six-month low of $95.80.

Afterpay shareholders would soon be granted Square shares as part of the scrip takeover offer, but Square has fallen 28.7 per cent in the past five weeks down to $US181.31.

Fellow fintech, ZipCo, dropped 10.1 per cent to an 18-month low of $4.34.

Meanwhile, hardware and groceries supplier Metcash jumped 7.3 per cent to a six-week high after revealing good first-half results. Woolworths gained 2.6 per cent after its offer for Priceline owner API, and Coles joined in the party with a 2.7 per cent rise, and Wesfarmers was up 2.1 per cent.

The major miners were lower with BHP falling by 1.6 per cent and Rio Tinto down 1.8 per cent, but Fortescue Metals gained 0.3 per cent. Lithium miners were under pressure. The recently renamed Allkem dropped 7.2 per cent and Pilbara Minerals was down 4.1 per cent. Gold miners were higher despite gold falling prices staying flat at about $US1,782.46 per ounce.

And Bapcor fell 5.1 per cent to a 14-month low of $6.41 after the board asked the departing chief executive to depart immediately amid signs of a falliong out with the well-regarded CEO.