ASX 200 midday update: Megaport rockets, Allkem’s update, tech shares rally

Two men lok sxcited on the trading floor.

Two men lok sxcited on the trading floor.At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) is on course to record a very strong gain. The benchmark index is currently up 1.75% to 6,765.5 points.

Here’s what is happening on the ASX 200 today:

Megaport shares jump

The Megaport Ltd (ASX: MP1) share price is rocketing higher on Wednesday. As well as getting a boost from a rebound in the tech sector, the release of a strong quarterly update has got investors excited. Megaport reported a 13% increase in monthly recurring revenue (MRR) to $10.7 million and its first quarterly operating profit of $1 million.

Allkem’s quarterly update

The Allkem Ltd (ASX: AKE) share price is underperforming today after the lithium miner’s quarterly update disappointed. Although Allkem reported record quarters for its Mt Cattlin and Olaroz operations, its guidance for FY 2023 appears to have underwhelmed. Management is forecast a sizeable production decline from its Mt Cattlin operation next year.

Tech shares storm higher

The tech sector has been the place to be on the Australian share market on Wednesday. Investors have been piling into the sector following a very strong night of trade on the tech-focused NASDAQ index. Block Inc (ASX: SQ2) and Xero Limited (ASX: XRO) shares have been among the best performers and are helping to drive the S&P ASX All Technology index 4.4% higher at the time of writing.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Megaport share price with a 19% gain. This follows the release of the network as a service provider’s quarterly update. Going the other way, there are only a handful of shares in the red. One of those is the Pendal Group Ltd (ASX: PDL) share price, which is down 2.5%. This may be due to profit taking after a solid gain yesterday amid takeover speculation.

The post ASX 200 midday update: Megaport rockets, Allkem’s update, tech shares rally appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., MEGAPORT FPO, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc. and Xero. The Motley Fool Australia has recommended MEGAPORT FPO. 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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