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It has traditionally been very hard to track the lithium (Li) price closely as sales are conducted via contracts and rely on a benchmarking service to provide a reference price, however, the industry is edging towards more transparent auctions as the likes of Pilbara (PLS) and more recently Albemarle Corp (ALB US) plan to sell more product using an this clearer approach. Perhaps they should be careful what they wish for as Li tests new multi-year lows! Australia’s 6th largest export has plunged over 80% in price since late 2022 causing havoc amongst the producers as the market has gone from fears of shortages to a glut in inventories. This year alone has witnessed some dramatic underperformance from Li related names which has weighed on the broader Resources Sector.
The ASX200 closed unchanged on Thursday with no lead from overseas markets; most local traders simply sat back and watched the Guzman y Gomez (GYG) IPO commence trading. By the end of the day, GYG was up +36%, valuing the Mexican fast food chain at over $3bn. At MM, we thought it would open strongly, but that was above our bullish expectations. As we said yesterday, let’s hope this reignites some confidence in both local capital markets and stocks in general.
The ASX200 closed unchanged on Thursday with no lead from overseas markets; most local traders simply sat back and watched the Guzman y Gomez (GYG) IPO commence trading. By the end of the day, GYG was up +36%, valuing the Mexican fast food chain at over $3bn. At MM, we thought it would open strongly, but that was above our bullish expectations. As we said yesterday, let’s hope this reignites some confidence in both local capital markets and stocks in general.
A quiet day at the index level with no lead from the US overnight. 7 of 11 sectors finished in the red, though more than 50% of stocks in the ASX 200 were up on the day. The big news was the success of the Guyman y Gomez (GYG) IPO, which came on the market at midday, and rallied 36% – the best major IPO in years.
The ASX200 had a quiet Wednesday as it limped into the US Juneteenth National Independence Day holiday. The market ended the session down just 0.1%, with winners and losers almost exactly matched. If anything, we saw a little stock/sector rotation, with profit taking evident in some of the year’s best-performing stocks, but on such a holiday-style low-volume day, little should be read into the action.
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)!
