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ASX 200 lunch time report: Ausdrill, Coles, & Galaxy lower

At lunch on Tuesday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has followed the lead of U.S. markets and is down 0.55% to 6,182.4 points.

Here’s what has been happening on the market today:

Tech shares climb higher.

One area of the market that has defied the market decline today is the tech sector. The shares of Afterpay Touch Group Ltd (ASX: APT), Appen Ltd (ASX: APX), and WiseTech Global Ltd (ASX: WTC) are all around 2% higher at lunch despite there being no news out of each of them.

Materials shares tumble.

One of the biggest drags on the market today has been the materials sector, particularly from battery ingredient producers. The likes of lithium miner Galaxy Resources Limited (ASX: GXY), graphite miner Syrah Resources Ltd (ASX: SYR), and nickel producer Western Areas Ltd (ASX: WSA) have all fallen more than most.

Coles deal with KKR.

The Coles Group Ltd (ASX: COL) share price has dropped lower despite news that the supermarket chain will receive a $200 million cash injection for entering into a joint venture for its Queensland hotels business. The deal will see KKR-owned Australian Venue Co. Limited manage the operations and receive the full economic benefit of the Spirit Hotels business. Whereas Coles will manage the day-to-day operations and receive the full economic benefit of the Retail Liquor business.

Cochlear shares upgraded.

The Cochlear Limited (ASX: COH) share price has edged higher on Tuesday after being upgraded by analysts at Citi. According to the note, the broker felt the recent selling of the hearing solutions company’s shares has been overdone and created a buying opportunity. Citi has a buy rating and $198 price target on its shares.

Best and worst performers.

The best performer on the ASX 200 at lunch is the Metcash Limited (ASX: MTS) share price which is up over 3%. This morning Morgan Stanley retained its overweight rating and $3.40 price target on its shares following the wholesale distributor’s strategy update. Going the other way is the Galaxy share price which is down 4%, closely followed by the Ausdrill Limited (ASX: ASL) share price which has tumbled 3.5% despite there being no news out of the mining services company.

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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, Appen Ltd, COLESGROUP DEF SET, and WiseTech Global. The Motley Fool Australia has recommended Cochlear Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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