Indices: Australian ASX 200
The ASX200 struggled on Tuesday under the weight of four major stocks tumbling by more than 10%, dragging the index lower from both a points and sentiment perspective. A strong banking sector couldn’t dig the bourse out of trouble, as health care and IT stocks were dragged underwater by sector giants CSL and WiseTech, each sinking more than 15%.
The ASX 200 advanced +0.4% on the last Monday of October, with winners and losers fairly evenly matched, but the influential banks and heavyweight resource stocks dragged the broader index higher.
The ASX200 made a new high on Wednesday, before slipping back towards the psychological 9000 level as the local market struggles to fully embrace the bullish lead from the US. Year-to-date, the ASX200 has rallied +10.5% whereas the S&P 500 is up +15.5%.
The ASX200 fell -0.7% on Wednesday, with volatility resurfacing in a session that saw stocks falling alongside gold and cryptocurrencies.
The ASX200 continued to advance in a “three steps forward, two back” fashion on Tuesday, posting a new all-time high before fading into the close. Gains were broad-based, with over 60% of the main board rising and 10 out of the 11 main sectors, with only the defensive facing consumer staples slipping lower.
The ASX 200 recovered stoically from early weakness to finish up +0.4% on Monday, supported by the banks and insurers, while the resources names experienced a rare day in the “naughty corner”.
The GEAR ETF, traded on the ASX, is a bullish ETF for leveraged exposure to the ASX200; as would be expected, the five largest holdings are now CBA, BHP, WBC, NAB and ANZ – no CSL at the moment.
The ASX 200 enjoyed a surprisingly strong Thursday, after a lacklustre start to the day. Aggressive buying pushed the market above 9100 for the first time before surrendering some of the day’s gains through the afternoon to close up +0.9%.
The ASX 200 climbed back toward the 9,000 mark on Wednesday, with strength across the banks and miners lifting the market to a second straight day of gains, with gold notching yet another record high.
