Appen rally lights up unloved tech stocks

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The S&P/ASX 200 Index fell 0.7 per cent to 7105.9 points; Appen rallied 29 per cent to $8.27 and Dan Murphy’s parent Endeavour Group sunk 6 per cent to $7.20.

Appen’s 29 per cent rally was not enough to rescue Australian stocks from a loss on Thursday, as the benchmark fell 0.7 per cent on a weaker materials sector.P/ASX 200 Index dropped 49.3 points to 7105.9 points; the All Ordinaries lost 0.7 per cent to 7339.3 points.

Takeover interest in Appen spurred ASX technology stocks higher. Tyro Payments added 5.1 per cent to $1.04, Pointsbet Holdings firmed 5 per cent to $2.50, Pro Medicus increased 2.7 per cent to $40.66 and WiseTech Global gained 2.4 per cent to $40.80.. Morgans raised its recommendation to “add” and Macquarie raised its earnings-per-share forecasts for the next three financial years, keeping its “outperform” on the shares.

Endeavour confirmed ongoing capital expenditure of $200 million to $260 million annually, and $120 million to $200 million of growth-focused investment. Iron ore traded in Singapore fell 2.3 per cent to $US128.50 a tonne in the futures market. BHP Group fell 0.9 per cent to $42.62, and Rio Tinto shed 1.1 per cent to $110.78.

 

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