HomeReportsThe Match Out: CBA hits record high, underpinning a…
When volumes are low, intra-day moves tend to persist in the direction they start given the majority of institutional trading now is done over the day with a greater proportion of the volume completed on the close i.e. in the ‘Match Out’. Yesterday’s price action was down, today was up, but the consistency in the trends were very similar. All 11 ASX sectors locally finished higher mirroring a positive move in Asia, the banks adding the most from an index perspective while Telstra (TLS) also chimed in, with the Telco now up 10% since the start of June.
Today marked another intra-day record for the ASX 200, though this time it couldn’t hold with the market closing -47pts off the morning high. It had a feeling of buy the rumour sell the fact as Chinese and U.S trade officials walked away from two days of negotiations having agreed on a preliminary plan to ease trade tensions, emphasising resolving issues around rare earths minerals and magnets shipping, with the U.S expecting to lift export restrictions in a ‘balanced way’.
The ASX200 posted a record close on Tuesday as broad-based buying took the index up 0.8%, with the heavyweight financials leading the market higher; the “Big Four” gained an average of 1.2%. The market adopted a clear “risk on” theme as it approached all-time highs, while abandoning some of the year's best-performing defensives, as underweight fund managers appeared increasingly exposed to the rising market.
Last week saw the US S&P 500 push to within 2.5% of its all-time high, enjoying the biggest jump since late May on Friday after a stronger-than-expected jobs report eased fears about a slowdown in the economy.
Even after slipping 0.3% on Friday, the ASX200 advanced 1.0% for the week, closing just 100 points/1.2% below February's all-time high. Overall, it was a relatively quiet week as traders eyed the long weekend as an excuse to pull up stumps early, compounded by the uncertainty of Friday night's May Payrolls numbers (jobs data) - in hindsight, there was nothing to worry about there! Although it felt quiet, it was the market's largest one-week gain since mid-May, with the ASX200 now advancing for four consecutive weeks and set to start the fifth positively. As we approach the EOFY, it's hard to imagine following all of the Trump concerns that the ASX200 is up +9.6% for the FY, yet another example of how equities deliver over time:
A softer session played out on the ASX today opening ~10pts up though never looked like moving higher with sellers chipping away as the index drifted down steadily through the day, closing at its lows ahead of key employment data in the U.S tonight.
The ASX 200 closed marginally lower on Thursday, surrendering early gains in a fairly lacklustre session, which at one stage was only ~0.6% from its February all-time high. The healthcare sector was the weakest on the day, with heavyweight CSL contributing the most to the index decline, decreasing 1.3%. There was some rare reversion on the stock/sector level, with gold names struggling while lithium names popped higher, not the normal EOFY tax loss selling shenanigans you would expect as we commence June:
A quiet day at the index level with the market closing flat, early strength was sold into, however, there was some reasonable moves in some stocks particularly in the resources space headlined by Lithium.
Wednesday saw the ASX 200 rally to within 1% of its all-time trading high on broad-based buying, with over 70% of the main board advancing, including the all-important banks and large-cap miners; the path of least resistance remains on the upside.
The bulls came to play today with the ASX having a great session, but more interestingly, the higher beta parts of the market like BNPL, Uranium , Lithium all attracted solid buying, but it wasn't at the expense of the much loved ‘certainty’ trade which remained well bid, implying new money is starting to gravitate back into the market. Weak GDP data released at 11.30am should underpin a more aggressive stance towards rate cuts from the RBA, and as a long as things cool rather than crater, lower rates should see stocks trade higher.
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