Have the Bulls begun a few days early?
The stars are aligning as the seasonally strong July period approaches. The market has gathered significant momentum this week which continued today, with both Iron Ore and Financials leading the way in a strong finish for the month of June – The ASX 200 is currently up 1.63% for the month, with nearly all of it coming from this weeks 102 point rally.
As mentioned this morning, we expected both the financials and the commodity sectors to outperform the broader market, where RIO closed 3.34% higher and ANZ up 2.36% for the day.
Weakness was felt in the Real Estate sector, which lost -1.23%. Overall, the market had a range of +/- 64 points, a high of 5820, a low of 5755 and a close of 5818, up +62pts or +1.08%. There was sustained buying throughout the day, the market finished just 2 points from its intraday high highlighting the current strength
ASX 200 Intra-Day Chart
ASX 200 Daily Chart
Financials
After three major investment banks in the US boosted dividends and indicated share buybacks, it was with no surprise to see the ‘millionaires’ factory’ Macquarie Group rally, adding 2.16% today. MQG has strong support at the ~$86 level, and the ~$96-97 resistance level looks likely to break in the near future. The majors followed suit, with three of the four up over 2% for the day (CBA up 1.58%).
Macquarie Group (MQG) Daily Chart
Iron Ore
On the back of a third strong day in iron ore trading, FMG was up 2.76% to $5.21, BHP +2.58% to $23.48 and RIO the pick of the lot up 3.34% to $63.39. We are currently holding all three stocks in the MarketMatters portfolio, generating strong returns today.
RIO Tinto (RIO) Weekly Chart
Suncorp
It seemed there was some profit taking in Suncorp today which opened higher before some sustained selling dragged it slightly lower to $15.06, down 0.33. We continue to see upside in the stock as reiterated in the morning report and are not looking to take profits yet.
Suncorp Group (SUN) Monthly Chart
Qantas
Finally, Qantas had another cracking day to finish at $5.86. The Kangaroo in the sky was up 4.64% for the day and now a whopping 108% for the financial year. A stock which had significant negative sentiment not all that long ago has more than doubled, highlighting the need to look past the headlines.
QANTAS Airways (QAN) Monthly Chart
Have a great night
The Market Matters Team
Disclosure
Market Matters may hold stocks mentioned in this report. Subscribers can view a full list of holdings on the website by clicking here. Positions are updated each Friday.
Disclaimer
All figures contained from sources believed to be accurate. Market Matters does not make any representation of warranty as to the accuracy of the figures and disclaims any liability resulting from any inaccuracy. Prices as at 29/06/2017. 5.00PM.
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