The S&P/ASX 200 Index (INDEXASX: XJO) drifted lower again today and one sector that was significantly hit was ASX tech.
Shares in Altium Limited (ASX: ALU), Appen Ltd (ASX: APX), Nearmap Ltd (ASX: NEA), and WiseTech Global Ltd (ASX: WTC) were all down by at least 4% at the close today. Meanwhile, the Computershare Limited (ASX: CPU) share price was one of the worst hit, falling by 8.32%.
So, with that being said, let's take a look at some of the factors behind the sell-off of some of the largest ASX tech shares today.
Global sell-off of tech shares triggered by coronavirus
I view the falls today as part of a global correction in the tech sector, triggered by a wider global share market correction that is being driven the coronavirus. The tech sector has seen massive gains over the past few years, so it is not surprising that some of the largest market gainers will also be hit the hardest.
Also, I believe that some ASX tech shares are being hit harder than most other market segments due to their wider global exposure. In particular, any tech share that has a link to mainland China and its supply chains is being viewed very negatively by the market right now.
So, let's take a closer look at two ASX shares that have been hit particularly hard over the last 2 weeks: WAAAX constituents Altium and WiseTech.
Altium
The Altium share price fell by 4.69% today to close $30.51. Since releasing its half-year results after market close on 17 February, Altium shares have crashed 28.43% lower.
During the first half of FY20, Altium reported revenue of US$92.85 million, a 19% increase over the prior corresponding period. However, it was guidance from management that appears to be what's had the most negative impact on investors.
In the half-year results release, the company stated it is likely to land at the lower end of its full-year revenue guidance range of US$205 million to US$215 million. This was driven by emerging uncertainty about the impact of the coronavirus in China.
WiseTech Global
The WiseTech Global share price saw a 5.25% decline today to close $15.70. Similarly to Altium, WiseTech shares have been in a world of pain since the logistics solutions provider released first-half results of its own on 18 February. In this time, WiseTech shares have fallen a massive 46.67%.
In WiseTech's earnings release, the company reported that the coronavirus is closing manufacturing and delaying trade. US imports from Asia fell on a year-on-year basis in December and January for the first time in a decade. In addition, container departures have slumped across Asia and particularly from China since late January.
