Tech sell-off continues with double-digit losses
The technology sector saw double-digit losses in May after a “rocky month” saw the index fall 10%.
According to S&P Dow Jones, the S&P/ASX Information Technology index was in the red for the year and was down 12%.
“The S&P/ASX 200 Information Technology index had a rocky month, sliding 10% to move Aussie tech further into the red for the year- down 12% so far.”
Year to date performance of Information Technology index versus ASX 200
Earlier this week, Forager Funds Management said they were looking to take advantage of the indiscriminate tech sell-off to buy up cheap stocks for its Australian Shares portfolio.
The other three sectors which underperformed during the month were industrials, energy and utilities which lost 1%, 1.7% and 6.6% respectively.
Meanwhile, financials rose by 6% while consumer discretionary and healthcare both gained 4%, making them the best-performing sectors during the month.
Over the month, it was the top 20 stocks which delivered the most outperformance with gains of 4% which helped the overall ASX 200 to gain 2% during May.
“Factors traded in a tight range in May with most of our reported factors closing the month in the range of 1%-2% of the S&P/ASX 200. Value was the sole outperformer among factor strategies this month, rising 3%. Pulling at the rear was momentum which ticked down 2% in May.”
The technology sector saw double-digit losses in May after a “rocky month” saw the index fall 10%.
According to S&P Dow Jones, the S&P/ASX Information Technology index was in the red for the year and was down 12%.
“The S&P/ASX 200 Information Technology index had a rocky month, sliding 10% to move Aussie tech further into the red for the year- down 12% so far.”
Earlier this week, Forager Funds Management said they were looking to take advantage of the indiscriminate tech sell-off to buy up cheap stocks for its Australian Shares portfolio.
The other three sectors which underperformed during the month were industrials, energy and utilities which lost 1%, 1.7% and 6.6% respectively.
Meanwhile, financials rose by 6% while consumer discretionary and healthcare both gained 4%, making them the best-performing sectors during the month.
Over the month, it was the top 20 stocks which delivered the most outperformance with gains of 4% which helped the overall ASX 200 to gain 2% during May.
“Factors traded in a tight range in May with most of our reported factors closing the month in the range of 1%-2% of the S&P/ASX 200. Value was the sole outperformer among factor strategies this month, rising 3%. Pulling at the rear was momentum which ticked down 2% in May.”
AUTHOR
Laura Dew
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