ASX 200 (XJO) down 2.2%, tech shares decline

The ASX 200 (ASX: XJO) is currently down 2.2% as selling intensified in the US share market.

Tech tech declines

The NASDAQ 100 (NDX) fell overnight. The Afterpay Ltd (ASX: APT) share price is down 5.2%.

There has been broad declines as investors push the sell button. Keep in mind that some ASX shares are only dropping back to prices where they were at a few weeks ago. But it is noticeable that volatility is increasing.

The ASX 200 has a number of technology businesses that have dropped:

The Megaport Ltd (ASX: MP1) share price is down 6%.

The WiseTech Global Ltd (ASX: WTC) share price is down 2%.

The Appen Ltd (ASX: APX) share price is down 3%.

Soon-to-be ASX 200 business Zip Co Ltd (ASX: Z1P) has seen its share price drop 4%.

Vaccine delay?

Other news may also be disturbing investors today. A COVID-19 vaccine is a key hope for the world returning to normal.

However, media is reporting that clinical trials for a vaccine being developed by AstraZeneca and Oxford University has been put on hold after a participant has reportedly had an adverse reaction in the UK.

The UK vaccine is currently in phase 3 of testing after successful phase 1 and phase 2 testing. There are 30,000 participants across the world. But this is actually the second time the vaccine trial has been put on hold and this happens any time a volunteer goes to hospital when the reason is uncertain. The participant is expected to recover.

Codan Limited’s (ASX:CDA) win

Codan Communications, which designs and manufactures mission-critical communications for global military and public safety applications, has won a contract with a large African government to supply tactical communications equipment.

The contract has a value order of US$10 million for the supply of Sentry-H radios and accessories.

It’s expected that the order will be delivered in the second half of FY21. The customer intends to deploy Sentry-H radios for national security purposes in military operations in a country-wide program.

The contract is a one-off purchase and there are no material conditions to be satisfied before delivery. Codan reassured investors by saying that the customer has an investment-grade credit rating with a stable outlook. It has a policy of mitigating risk with either a ‘letter of credit’ or appropriate credit insurance.

Codan said it is a significant contract as it reinforces its strength and position in the African market and enhances the strategy of trying to penetrate the global security and military sector.

Other news

The team over at Rask Media have covered the rest of today’s news, so make sure you head over there for more ASX share market coverage.

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At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

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