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
Recommended for you
Selfwealth has provided an update on the status of its scheme implementation deed with Bell Financial Group as well as whether rival bidder Svava remains in the picture.
Magellan Financial Group has reported its first half FY25 results while appointing a new chief financial officer and promoting Sophia Rahmani to chief executive.
Schroders Australia has launched two active ETFs and plans to further expand its listed range over the year ahead.
Platform Netwealth has reported its financial results for the first half of FY25, reporting an 80 per cent increase in net flows, with its CEO viewing a “huge opportunity” from private assets.
