ASX Sinks as Global Jitters Rattle Sentiment: Tech, Materials Lead Broad Selloff

Key Highlights:

• S&P/ASX 200 slumps 1.62% to 7,852.7 as all 11 sectors end in the red
• Tech (-2.27%) and Materials (-2.73%) lead declines amid global risk-off mood
• Volatility remains low, but global markets and commodity weakness weigh

Broad-Based Pullback Caps March as ASX Tracks Global Declines

Australian equities finished the month on a sour note, with the S&P/ASX 200 sliding 1.62% to close at 7,852.7 amid broad-based selling and negative leads from global markets. The All Ordinaries dropped 132.1 points (-1.61%) to 8,063.4, while the ASX Small Ordinaries index fared even worse, falling 1.75% to 3,009.1.

Investor sentiment soured after a sharp selloff on Wall Street last Friday, with the Dow Jones falling 1.69%, the Nasdaq tumbling 2.7%, and the S&P 500 shedding 1.97%. Those declines filtered into the local market, dragging down all 11 ASX sectors, with high-growth and resource-heavy names among the hardest hit.

The ASX All Technology Index fell 2.27%, extending a volatile run for tech stocks amid renewed fears of high interest rates in the US. Meanwhile, the Materials sector led sectoral losses with a 2.73% fall, following weakness in commodity prices and a pullback in key names like Pilbara Minerals (-8.17%) and Firefly Metals (-7.77%).

From Banks to Miners: No Refuge for ASX Sectors

The selloff was indiscriminate, with every major sector ending the session lower. Notable declines included:

• Materials: -2.73%
• Information Technology: -1.91%
• Discretionary: -1.55%
• Financials: -1.52%
• Energy: -1.53%
• Real Estate: -1.40%

The ASX 200 Banks Index dropped 1.24% to 3,480.9, under pressure from macroeconomic uncertainty and a softening yield outlook. Industrials (-1.26%) and Telecommunications (-1.14%) also posted losses, while even traditional defensives such as Health Care (-0.81%) and Utilities (-0.33%) could not escape the broader decline.

The ASX 200 Resources Index tumbled 2.67% to 5,130.6, driven by heavy falls in lithium, gold, and uranium players. Sovereign Metals (-11.24%), Adriatic Metals (-8.98%), and Nexgen Energy (-6.37%) were among the biggest decliners.

Despite the day’s slump, volatility remains low. The S&P/ASX 200 VIX Index sits at 14.6, indicating expectations of subdued price swings over the next 30 days. This suggests investor confidence is not fully eroded, even as caution prevails.

Winners in a Sea of Red, While Global and Commodity Pressures Mount

Amid the broader selloff, a handful of stocks managed to buck the trend. Hutchison Telecommunications surged 15%, while Om Holdings rose 7.35% and Southern Cross Electrical Engineering added 4.17%, driven by company-specific momentum.

Other notable gainers included:

• BCI Minerals: +4.00%
• Catalyst Metals: +3.90%
• Boss Energy: +2.86%
• Vista Group: +2.71%

Commodities delivered a mixed picture. Brent crude slipped 0.10% to US$73.56 per barrel, while WTI dropped 0.23% to US$69.20. Gold provided a rare bright spot, inching up 0.28% to US$3,123.10 per ounce as investors sought defensive hedges. Silver and copper were little changed.

Currency markets were relatively stable, with the Australian dollar trading at US$0.6297, up 0.16%. Gains were also recorded against the New Zealand dollar and Canadian dollar, offering modest support for importers and global investors.

Looking ahead, the market is likely to remain reactive to US Federal Reserve signals, Chinese economic data, and corporate earnings from major ASX players. While today’s selloff reflected global contagion, low volatility readings suggest that the market’s foundations remain relatively intact.

For now, however, the local bourse remains on the defensive, rounding out March with a stark reminder of the interconnected nature of global equities.