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ASX 200 rebounds into positive territory following yesterday’s sell-off

The S&P/ASX 200 Index (INDEXASX: XJO) is back in the green on what has been a somewhat tumultuous day of trading.

When the market first opened this morning, the ASX 200 Index was down by as much as 3.8%. However, it’s gradually clawed back losses and then continued into positive territory to be up by 1.30% at the time of writing.

As of market close yesterday, the ASX 200 had shed 19.6% of value from its 20 February peak. Everything came to a head yesterday as the ASX recorded its largest one-day fall since the Global Financial Crisis.

Who have been the biggest gainers on the ASX today?

Some of the ASX sectors which have taken big hits recently are bouncing back quite strongly today as bargain hunters enter the market and buy shares at much more favourable prices.

The ASX tech sector, for example, is seeing some strong gains across the board after suffering heavy losses over the past two weeks. At the time of writing, Nearmap Ltd (ASX: NEA) is trading 6.3% higher, Afterpay Ltd (ASX: APT) is up by 4.1%, and WiseTech Global Ltd (ASX: WTC) shares have seen a 4.0% increase, while the Appen Ltd (ASX: APX) share price surged as much as 10% in early afternoon trade.

Following yesterday’s oil price collapse, Beach Energy Limited (ASX: BPT) shares have seen a strong 7.9% gain so far today as bargain hunters enter the market after a huge 19% sell-off yesterday. Worley Ltd (ASX: WOR) shares are also up strongly by 4.7%.

Second-hand car parts distributor Bapcor Ltd (ASX: BAP) is one of the best performers on the ASX 200 today, up by 11.5%.

The ASX banking sector is also performing well with National Australia Bank Ltd (ASX: NAB) up by 3.9%, Commonwealth Bank of Australia (ASX: CBA) up by 3.6% and Westpac Banking Corp (ASX: WBC) up by 4.0%. Rounding things out, the ASX mining sector is another top performer, with BHP Billiton Ltd (ASX: BHP) trading 4.0% higher at the time of writing.

Have we just hit the bottom of the market?

I think this is the question that everyone would like to an answer to. The truth is, nobody really knows if the worst is now behind us, but it is pleasing to see a more settled market today.

It’s very important to keep in mind that the kind of market volatility we’re experiencing right now does happen in markets from time to time. On average, the ASX share market falls by at least 10% around once a year.

We are now well beyond that 10% mark, however, a major correction is not surprising as we are coming off all-time highs on the ASX and we have had a very solid 10 years of gains since the GFC.

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Phil Harpur owns shares of AFTERPAY T FPO, Bapcor, Commonwealth Bank of Australia, Nearmap Ltd., Westpac Banking, WiseTech Global, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended Bapcor and Nearmap Ltd. The Motley Fool Australia owns shares of National Australia Bank Limited, WiseTech Global, and Xero. 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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