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The ASX sank early today down ~50pts by 11am before producing a very solid come-back to finish a whisker higher – a strong effort really ahead of the RBA decision on rates tomorrow and a mixed day for the banks with ANZ announcing a new CEO.
Momentum mania is sweeping both Wall Street and the ASX, with the risk party continuing unabated on Friday night. The S&P 500 ended last week at fresh records, helped by a +28% gain by the NASDAQ this year.
The ASX200 ended the first week of December down just 0.2%, with the real estate sector the main drag, falling 2.65% following the sell-down of $1.9bn worth of sector/market heavyweight Goodman Group (GMG) stock. Conversely, IT and consumer discretionary sectors were best on the ground. The gold names dominated the winner’s enclosure after Northern Star’s (NST) $5bn takeover of De Grey Mining (DEG), while lithium and ESG continued to decline.
We are taking profit on a bank in the International Equities Portfolio
Some selling pressure swept across the ASX today with over 70% of the main board finishing lower. We’ve talked about the declining momentum on the upside, and while it’s too early to conclude the bullish trend is over, some consolidation at least wouldn’t surprise.
We are making changes across two portfolios today.
The ASX200 closed up +0.15% on Thursday in an ultimately lacklustre session, which promised more in the morning before surrendering two-thirds of its gains through the afternoon. Tech and consumer discretionary names advanced over 1% while real estate lagged, slipping -1.4%. On the commodities front, the story remains the same, and it’s starting to get a little bit monotonous as we head into Christmas, less than three weeks away.
While the market continues to edge up, it’s becoming very stock specific and we are seeing some obvious loss of momentum in to fresh all-time highs. Some profit taking in banks becoming obvious while resources by in large remain friendless.
Yesterday’s weak Australian GDP number was a shocker; there was no other way to describe it with bonds and the $A reacting accordingly.
On a day that started off with some major transactions led by Goodman Group and ProMedicus, GDP data released mid-morning added fuel to a mixed session. Investors showed signs of exhaustion after pushing to all-time highs over the last few days, with property and banks largely responsible for dragging the index lower.
