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ASX 200 set to fall – APX & ASX travel shares in focus

The S&P/ASX 200 (ASX: XJO) bore the brunt of the global sell-off on Friday as news emerged of another, more dangerous strain of COVID-19 found in South Africa.

Potentially resistant to existing vaccines, the news spooked the market, sending the ASX 200 down 1.7% and taking the weekly loss to 1.6%; the third weekly loss in a row.

Only 14 stocks out of the ASX 200 managed to deliver a positive return, with the energy sector the hardest hit, falling 4.6%, as every sector fell.

Naturally, gold rallied amid the volatility with Newcrest Mining Ltd (ASX: NCM) gaining 0.8%.

Appen smashed, ASX travel shares tumble

Shares in Appen Limited (ASX: APX) led the market lower, falling 18.8% after Macquarie Group Ltd (ASX: MQG) flagged concerns about the lack of a positive earnings update that had occurred in previous years.

ASX travel shares gave up recent gains on the threat of border closures as Flight Centre Travel Group Ltd (ASX: FLT) fell 7.5% and Corporate Travel Management Ltd (ASX: CTD) dropped 5.8%.

ASX 200 weekly movers

Over the week, the materials and utilities sectors were the rare beneficiaries, as the iron ore price exceed US$100 per tonne once again.

On a company-specific level, the highlight by far was EML Payments Ltd (ASX: EML), which jumped 24% after getting positive regulatory news, with Fortescue Metals Group Limited (ASX: FMG) also gaining 11%.

Appen led the weekly losers, down 21.5%, with TechnologyOne Ltd (ASX: TNE) also falling nearly 14% after a weak FY21 result.

ASX 200 today

Looking ahead, the ASX 200 is expected to tumble on Monday as US stock markets were crunched by more than 2% on Friday. For all the latest, check out my US stock market report.

The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

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You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

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At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

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Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

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