HomeReportsAsk James: The bulls think its Pamplona!
The ASX200 enjoyed another strong week to take March’s rally to over 5%, under the hood a mixed bag of Utilities, Resources and IT stocks all enjoyed strong moves while the banks remained supportive of the index. As we slowly but surely edge towards fresh highs MM expects volatility to increase on the stock level as fund managers pick out different names they believe have run too hard but we feel the general absence of sellers will remain and could April deliver some reversion on the stock / sector level as investors take profit on the top performers while chasing value in names which look ready to play some catch up. The variance has been huge across the board as we approach the end of Q1 of 2022:
The ASX200 slipped lower on Friday but still managed to snap a two-week losing streak. The index finished up +1.7% over the five days, driven by strong gains by miners and rate-sensitive names. On the sector level, only healthcare retreated courtesy of renewed tariff jitters while the Materials sector surged over 5% higher, led by gold, rare earth and lithium stocks. A more than 30c gain by BHP in the US on Friday nights suggests there's more in this move. The extent of the gains in miners saw a number of the best performers outperform IRESS (IRE), and it received a takeover bid!
The ASX finished the week sluggishly as the market took its foot off the gas with US tariffs on ~90 trading partners becoming effective yesterday. Despite the tremors, the index still managed to gain 1.7% over the period and is within striking distance of fresh all-time highs
The ASX 200 slipped 0.1% on a quiet Thursday, with the index remaining around all-time highs as the exchange where its shares are traded goes from one mess-up to the next.
The ASX 200 plateaued today, failing to push to new highs despite a solid session overnight in the US, though there was no clear push in either direction after recent strength.
The ASX200 surged another +0.8% on Wednesday, closing at a fresh all-time high, and well above the psychological 8800 for the first time. Over 75% of the main board closed higher, but the main drivers of the more than 70-point advance were the heavyweight financials and materials sectors, which combined made up almost 60% of the indexes gain.
A second day of strength for the ASX, breaking out to new highs as ‘risk on’ flows across the market. Futures were well supported overnight, even as the US market pulled back, implying a degree of overseas buying is hitting our bourse led by a reemergence of interest in the resources and energy sectors.
The ASX200 surged towards new highs on Tuesday, ending the session up +1.2%, only 6 points below its all-time high. Gains were broad-based, with over 90% of the main board advancing, led by the rate-sensitive consumer discretionary, real estate and financial stocks.
181 stocks in the ASX 200 made gains today, all sectors were higher, intra-day dips were bought, and the market made a new all-time closing high up tripped digits – a bullish day all around as we move into local reporting season. US earnings have strong; we made the point this morning that S&P 500 companies are on track to post a +9.1% lift in profits, far above analysts’ projection of 2.8% before results began, with earnings, and importantly, positive earnings revisions ultimately driving stock prices. Now it’s our turn!
The ASX200 recovered from early losses on Monday to end the session in positive territory, an impressive performance considering the Dow's more than 500-point drop on Friday night.
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