Archives: Reports
A muted session with no trade in the US tonight, though it was pleasing to see (for MM) that some of the recently soft sectors found some love, in what has been a tough few weeks of relative performance for our active growth strategy. Banks succumb to some profit-taking after a great run, and one can’t help but think, does a buy resources, sell banks trade make sense for the active traders out there?
We are adding to a position in the Active Growth Portfolio.
The ASX200 enjoyed a strong day at the office on Tuesday, adding to a solid opening throughout the day to finish up over 1%. Gains were encouragingly broad-based, with over 75% of the main board and all 11 sectors closing in positive territory as sellers appeared to take a lead from the looming US Juneteenth National Independence Day holiday. There were a couple of standout moves that should unsettle the numerous bears who are getting plenty of air time in the press.
A good session for the ASX with solid buying across all sectors. While the Resources and Energy still lagged broader gains, there was some obvious buying of the dip in some pockets, though financials were still the main driver at the index level as CBA hit a new closing high (again)!
China’s housing crisis deteriorated in May, triggering further calls for Beijing to support the important economic area. Yesterday’s data was the worst since 2011. The property market has weighed on China’s economic growth for years, and yesterday saw declines in real estate investment and home prices gather pace. Also, industrial production missed expectations for May, rising 5.6% from a year earlier but slowing from April. The only encouraging light on Monday was Retail Sales improving faster than expected, but the net result is China is still experiencing a weak economic recovery, with Beijing needing to step up if it’s going to achieve its 5% growth target.
More of the same for the ASX today with the market remaining soft, particularly in China-facing sectors as weak data persists in the region. The RBA meet tomorrow to decide on rates, no change is expected from the 4.35% headline rate, and Michelle Bullock will likely remain consistent with her data dependency call.
French President Macron is playing a huge game of chess, poker, or maybe even chicken after making the calculated gamble that the French people won’t hand over power to Marie Le Pen and the Far Right. Last Sunday’s European elections stunned the region as the Far Right Parties’ popularity surged. The National Rally Party secured around twice as many votes as Macron’s Renaissance Party. Hence, the President’s large throw of the dice, which has unsettled the French CAC-40 and other European equity indices.
The ASX200 market slipped lower throughout the shortened week, finally closing down -2%, after showing so much promise going into the long weekend. With the likes of BHP Group (BHP), RIO Tinto (RIO), Sandfire Resources (SFR) and South32 (S32) all making fresh multi-week lows, it was always going to be a tough ask for the resources-laden ASX200 to advance. Conversely, the less influential Tech Sector fared much better, with most major names advancing in unison with the US NASDAQ, which posted fresh all-time highs in most sessions over the 5-days.
A soggy way to end a choppy week for the ASX with the market trading in a relatively tight ~30 point trading range. An eclectic mix of performers today with around 65% of the ASX 200 trading lower, though some of the recently depressed names saw some bargain hunting.
A whopping 9% of the ASX200 is up over 30% so far in 2024, although a lot of better-known “high flyers” didn’t make the cut with such a high bar. Surprisingly, after moves on the sector level, there were still plenty of miners in the winner’s enclosure driven by stock specific influences – which is true across the list below. While the Macro is important, and we place a lot of emphasis on it, stock picking is where the rubber hits the road.
