The ASX200 enjoyed a solid Wednesday session with the combination of strong earnings and aggressive chasing of some recovery stocks ultimately leading to a +0.4% advance – 12 shares rallied by 5%, and more, while only 4 names fell by the same degree. A couple of standout themes on the stock and sector level caught our attention yesterday with an underlying belief that Australia will be 70-80% vaccinated and trading basically as usual by Christmas shining through:
- The Travel & Tourism stocks enjoyed a strong day e.g. Flight Centre (FLT) +7.4%, Webjet (WEB) +6.5%, Qantas (QAN) +5.4% and Corportae Travel (CTD) +6.6%.
- A couple of stocks rallied / recovered strongly after investors digested recent reports e.g. HUB24 (HUB) and Monadelphous (MND) – both of which MM owns in our Growth Portfolio.
- The miners are recovering strongly from Fridays panic like low with OZ Minerals (OZL), IGO Ltd (IGO) and Nickel Mines (NIC) already bouncing over 10%.
The Tech Sector was by far the best on ground which is hardly surprising with Wisetech Global (WTC) soaring +28% following a very solid beat. The positive sentiment from WTC helped drag 86% of the sector higher with Afterpay (APT) one of the 2 stocks to struggle as the BNPL investors digested more large losses by APT & Z1P as they strive for quick growth and market share.
US stocks edged higher overnight ahead of Jackson Hole later in the week i.e. a Fed meeting which may deliver the much anticipated plan for ending stimulus & normalisation of interest rates. The SPI futures are calling the ASX to open slightly in the red but any action of note appears likely to remain under the hood.
MM remains bullish the ASX and keen buyers of pullbacks
Add To Hit List
