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ASX 200 drops over 2%, tech and oil fall

ASX 200
Credit: Cimexus

The S&P/ASX 200 Index (ASX: XJO) fell by 2.15% today to 5,879 points.

It has been a tough September so far for share market investors. The NASDAQ has dropped by around 10% over the past week. This is hurting the local Australian share market as well.

There was a sea of red today, particularly in the technology and resource sectors.

Biggest ASX 200 declines

Oil saw some of the biggest declines, the Beach Energy Ltd (ASX: BPT) share price dropped 9.2%, the Oil Search Limited (ASX: OSH) share price dropped 7.8% and the Santos Ltd (ASX: STO) share price fell 5.4%.

Looking at technology, the Megaport Ltd (ASX: MP1) share price fell 6.1%, the Afterpay Ltd (ASX: APT) share price recovered to just a 1.3% drop, the Appen Ltd (ASX: APX) share price fell 4.1% and the Nearmap Ltd (ASX: NEA) share price dropped 3.7%.

The other big falls in the ASX 200 was the Graincorp Ltd (ASX: GNC) share price falling 8.9% and the Credit Corp Group Limited (ASX: CCP) share price dropped 7.75%.

Australia’s big four ASX banks also suffered a decline. The Commonwealth Bank of Australia (ASX: CBA) share price dropped 2.5%, the Australia and New Zealand Banking Group (ASX: ANZ) share price fell 3%, the National Australia Bank Ltd (ASX: NAB) share price declined 2.6% and the Westpac Banking Corp (ASX: WBC) share price went down 3.3%.

There were a few businesses that managed to rise. The Nufarm Limited (ASX: NUF) share price went up 2.7%, the GUD Holdings Limited (ASX: GUD) share price grew 2.4% and the IPH Ltd (ASX: IPH) share price rose 2.1%.

Qube Holdings Ltd (ASX: QUB)

The company announced today that Patrick Terminals has entered into lease arrangements extending Patrick’s tenure at the Port of Melbourne to 2066. Qube holds a 50% interest in Patrick Terminals.

The company said that the arrangements secure Patrick’s long-term strategic footprint at East Swanson Dock and an adjoining logistics site at Coode Road. Patrick has recently upgraded its capabilities at the East Swanson Dock.

Qube also said that it has secured funding for a new rail terminal. The Coode Road logistics site will be developed over the next few years to deliver rail capacity and to interface with Patrick’s container terminal.

Patrick has entered into a development deed with the Port of Melbourne to co-fund and build the rail terminal. Patrick’s share of the cost is expected to be funded from its operating cashflow and available, undrawn debt facilities.

The Qube share price fell 2.6%.

Codan Limited (ASX: CDA)

Codan announced today that it had won a significant contract.

It said that Codan Communications has won a contract with a large African government to supply tactical communications equipment. The contract has a value order of more than US$10 million to supply Sentry-H radios and accessories. Codan expects to deliver the order in the second half of FY21.

The radios are intended for national security purposes in military operations in a country-wide program. The contract is a one-off purchase and there are no material conditions that are required to be satisfied prior to delivery.

Management said that this is a significant contract for Codan, as it reinforces its strength in providing such equipment to the African market and enhances its strategy to successfully penetrate the security and military sector globally.

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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended MEGAPORT FPO and Nearmap 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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