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Unravelling ASX Today: The Rise of Tech and Renewable Energy Shares

In today's Australian financial scene, the ASX has been marked by a rise in tech and renewable energy shares. Notably, the ASX Technology and ASX Renewable Energy indexes have garnered increased interest from investors.

Diving into the ASX and the impact of technology and renewable energy shares

The technology sector of the ASX has seen a shift in investor sentiment, as highlighted in Yolanda Redrup's 2022 AFR article. Fund managers are identifying a split in the tech sector: 'earners and burners'. Some tech companies, dubbed 'burners', are running through cash at an unsustainable rate, while others, the 'earners', are demonstrating value despite ongoing losses.

The ASX All Tech Index has had its share of turbulence, falling more than 30% from highs in August 2022 to October 2022 before wobbling it's way back to similar levels in 2023. However, there are glimmers of hope as depressed valuations for certain tech companies are now presenting as attractive opportunities for discerning investors.

Renewable energy shares on the ASX are gaining traction, fueled by the shift away from the finite, and environmentally damaging, fossil fuels. As we reach into the ground for the last ounces of coal, the stark reality of our situation becomes more apparent, driving energy companies and a flurry of startups towards renewables. This eco-conscious pivot, from fossil-focused giants like Origin Energy Ltd to 100% renewable players like Mercury NZ Ltd, has created an array of investment opportunities in green energy. The umbrella term "renewable energy shares" even stretches to those in the supply chain, such as lithium miners for electric vehicles.

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