3 ASX Tech Stocks with Significant Movements in last Two Days

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Australian Economy

After the restrictions on foreign investment in US business and US-China trade war fears, Australian equities sunk at the open amid the contradictory reports on June 26, 2018. The S&P/ASX200 index fell 16 points or 0.3 percent to 6,194.1 points as at June 26, 2018  before the market close. This trend followed the losses seen in the US indices. Primarily, the US saw a decline in the Dow Jones Industrial Average by 1.3 percent to 24,252 points; the S&P 500 moved to 2,717 points, down by 1.4 per cent; and the Nasdaq index fell to 2.1 per cent to 7,532 points. There was a heavy sell-off in tech space, however, the same appeared to be short-lived though as the tech stocks across the globe regained momentum the very next day of trading. However, risks from the trade war still loom and can impact investor sentiment, investment appetites and there could be second-order effects that can slow down the growth. A look at the ASX listed tech stocks in the past two days of trading reveals this back and forth momentum.

Altium Limited (ASX: ALU) is an information technology stock which fell around 4.2 percent to $23.17 as at June 26, 2018. The stock traded around $23.670 as at June 27, 2018 and slipped only by 0.46%. Coming to financials, the group had recorded 30% revenue growth with all regions and business segments delivering double-digit revenue growth for 1H FY18. China continued its rise and significance – delivering 30% revenue growth and expanding further by opening a new sales office in Shenzhen while Octopart continued to outperform through increased traffic and improved search experience delivering 42% revenue growth.

WiseTech Global Limited (ASX: WTC), another information technology stock which was down at $16.48 i.e. by 3.9 per cent as at June 26, 2018, was seen to trade at a market price of $16.760 and recovered with a daily price change of $0.430 and a percentage change of 2.6% as at June 27, 2018. The $100 million capital raise through shares to a global institutional investor by WiseTech had raised some concerns as the company already had a cash balance which was healthy. Nonetheless, the acquisition spree company might be into something that only time will unveil.

Appen Limited (ASX: APX) under information technology bracket, witnessed a fall to $13.04 in the early hours of June 26, 2018, down by 3.8 per cent. The stock traded at a market price of $13.46 as at June 27, 2018 and has been seen recovering with a daily price change of $0.25 and a percentage change of 1.89%. The group trades at a very high P/E multiple and is being compared to big tech stocks like Google across the globe. Appen has been able to maintain a strong balance sheet, with good cash at hand.

While these stocks are trading at high levels, the changing trends might bring in some volatility. However, if China is restricted in terms of US investments, then the domestic tech stocks might have a better prospect.


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