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ASX 200 morning report – tech & coal shares in focus

The S&P/ASX 200 (INDEXASX:XJO) was weighed down on Tuesday by concerns that COVID-19 lockdowns have hurt economic growth in China.

The Australian share market was weighed down on Tuesday by concerns that COVID-19 lockdowns have hurt economic growth in China. The benchmark S&P/ASX 200 (ASX: XJO) finished down 0.3% while the broader S&P/ASX All Ordinaries (ASX: XAO) closed 0.35% lower.

Commonwealth Bank of Australia (ASX: CBA) gained 0.6% to $105.09; National Australia Bank Ltd (ASX: NAB) was up 1% to $31.09; Westpac Banking Corp Ltd (ASX: WBC) lifted 0.6% to $23.54; and Australia and New Zealand Banking Group Ltd (ASX: ANZ) added 0.2% to $25.37.

The heavyweight miners had a mixed day, with Rio Tinto Limited (ASX: RIO) putting on 0.9% to $110.47 and Fortescue Metals Group Limited (ASX: FMG) gaining 0.3% to $20.77, while BHP Group Ltd (ASX: BHP) was down 3 cents at $47.80.

The best price action was in the coal stocks, which continued their remarkable renaissance, with New Hope Corporation Limited (ASX: NHC) adding 2.3% to $4.05, Whitehaven Coal Ltd (ASX: NHC) up another 5 cents to $5.20, and Yancoal Australia Ltd (ASX: YAL) up 2.4% to a record high of $5.97. New Hope and Whitehaven are at three-year highs.

Agricultural chemical company Nufarm Ltd (ASX: NUF) fell 14.6% to $14.99 after Japanese chemical giant Sumitomo sold its 15.9% stake in the company on Monday, 12 years after buying into it.

Tech turns down

ASX tech stocks were big sliders, with the official sector index falling 3% on Tuesday. Afterpay owner Block Inc CDI (ASX: SQ2) slid 7.2% and fellow buy now, pay later operator Sezzle Inc (ASX: SZL) slumped 10.5% to a three-year low of 51 cents.

However, Kiwi-based church donation software specialist Pushpay Holdings Ltd (ASX: PPH) surged 15.6% after telling the market it is attracting firm takeover interest.

Tabcorp spin-off debuts

Meanwhile, Tabcorp Holdings Limited (ASX: TAH) spin-off The Lottery Corporation (ASX: TLC) made its debut on the ASX under the stock code TLC, with its shares closing at $4.70. With the keno and lottery businesses stripped out of Tabcorp, Tabcorp shares fell $4.285, or 83%, to $1.055, to reflect the schism.

Elsewhere, Good Drinks Australia Ltd (ASX: GDA) rose 6.7% after the company, which owns Perth brewer Gage Roads, signed a “transformative” deal to exclusively distribute in Australia the beers of American brewing giant Molson Coors, including Miller Genuine Draft and Coors.

ASX 200 today

Looking ahead, the ASX 200 is expected to edge higher when the market opens this morning, despite a mostly negative lead from US stock markets overnight.

Social media giants were heavily sold-off after Snapchat (NYSE: SNAP) warned of a deteriorating macroeconomic environment, with shares tumbling more than 40%.

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