What a run for ASX 200 tech shares!
Technology was once again the best performer among the 11 market sectors last week.
This was the third consecutive week that tech shares led the market. Tech stocks rose by 4.63% last week, building on the 5.83% uplift in the previous week and the 2.48% bump in the week before that.
Meanwhile, the S&P/ASX 200 Index (ASX: XJO) rose 0.21% last week to finish at 8,285.2 points on Friday.
Seven of the 11 market sectors finished the week in the green.
Let's review.
Image source: Getty Images
What's driving ASX technology shares higher?
A few factors are at play here.
Firstly, the ASX tends to follow the United States share markets, and the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) has risen strongly—up 3.18%—over the past three weeks.
Republican Donald Trump's surprisingly decisive election victory has been one factor driving US tech stocks higher.
This is due to his policies of lower corporate taxes, import tariffs, and deregulation in the US tech sector.
In addition, the US Fed's second rate cut has further lowered the cost of debt for growth companies like those in the burgeoning tech sector.
Locally, we've seen significant share price increases among some of the ASX 200 tech sector's biggest businesses.
This has lifted the entire sector over the past few weeks.
For example, the share price of the sector's largest company, WiseTech Global Ltd (ASX: WTC), has ripped 20.29% higher since the close of trading on Friday 25 October.
This reflects the stock's recovery from a significant slump caused by negative press about the personal life of the company's founder, Richard White. White has resigned as CEO but will stay on as a consultant.
Wisetech shares rose by 4.96% last week to finish at $134.73 on Friday.
The sector's second-biggest company, Xero Ltd (ASX: XRO), has also recently experienced strong share price growth. Xero shares have risen 17.1% since the market close on 25 October.
On Thursday, Xero released its 1H FY25 results. The company revealed a 25% increase in half-year operating revenue to NZ$995.9 million and a 76% lift in net profit after tax (NPAT) to NZ$95.1 million.
The results were better than expected, sending the ASX tech stock to a new all-time high of $172.94.
The Xero share price closed the week at $172.61, up 9.09%.
Drilling down on the share price movements of other major ASX tech shares last week, Megaport Ltd (ASX: MP1) was among the best performers. The Megaport share price rose 11.23% to $8.32.
Appen Ltd (ASX: APX) shares continued their strong momentum, rising 7.42% over the week to $2.75.
Objective Corporation Ltd (ASX: OCL) shares rose by 4.13% to close at $17.90.
TechnologyOne Ltd (ASX: TNE) shares lifted 3.26% last week to finish at $26.92.
ASX 200 market sector snapshot
Here's how the 11 market sectors stacked up last week, according to CommSec data.
Over the five trading days:
| S&P/ASX 200 market sector | Change last week |
| Information Technology (ASX: XIJ) | 4.63% |
| Utilities (ASX: XUJ) | 3.43% |
| Consumer Discretionary (ASX: XDJ) | 2.7% |
| A-REIT (ASX: XPJ) | 2.58% |
| Financials (ASX: XFJ) | 2.14% |
| Communication (ASX: XTJ) | 1.87% |
| Industrials (ASX: XNJ) | 0.91% |
| Energy (ASX: XEJ) | (2.14%) |
| Healthcare (ASX: XHJ) | (2.45%) |
| Consumer Staples (ASX: XSJ) | (2.66%) |
| Materials (ASX: XMJ) | (5.56%) |
