ASX 200 up 0.5%: Altium guidance update, Afterpay & Zip jump

The tech sector is on fire on Friday and helping to drive the ASX 200 higher…

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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a positive note. The benchmark index is currently up 0.5% to 7,396.7 points.

Here’s what is happening on the market today:

Altium update

The Altium Limited (ASX: ALU) share price is rising today after it released a trading update this morning. Although management warned that it could potentially fall short of its guidance for FY 2021, its positive commentary on the future appears to have offset this. In FY 2021, revenue is expected to be at the low end, or slightly below, its guidance range of US$190 million to US$195 million in FY 2021. However, management remains confident it can grow its revenue to US$500 million in 2025.

Tech shares race higher

Altium isn’t the only tech share rising today. The likes of Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) are charging higher following a strong night on the tech-focused Nasdaq index. A rotation from value stocks to growth appears to be behind this. This has led to the S&P/ASX All Technology Index (ASX: XTX) rising a sizeable 3.3% so far today.

Telstra share price hits 52-week high

The Telstra Corporation Ltd (ASX: TLS) share price has continued its positive run and hit a new 52-week high of $3.61 this morning. This means the telco giant’s shares have now risen by an impressive 20% since the start of the year. Investors appear optimistic that a return to growth is on the cards for the company in FY 2022.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Zip share price with a 9% gain. This has been driven by improving investor sentiment in the tech sector. The worst performer has been the Santos Ltd (ASX: STO) share price with a 3.5% decline. This follows a pullback in oil prices overnight.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Altium, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, Altium, and Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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