Archives: Reports
Nice to get back to the desk after a break and re-engage with Market Matters members as we kick off what should be another exciting one, full of opportunities. As we suggested this morning, we will endeavour to steer you all in the right direction throughout the year! Today was a flat session at the index level, however, there were a few fire-works under the hood, the most obvious in the Uranium space after the world’s largest producer cut production forecasts highlighting just how tight the market currently is.
We are amending multiple portfolios.
The ASX200 has chopped around in early January, it’s still within striking distance of its 7632 all-time high, with the Index sitting down -1.2%, but if we included dividends, the ASX Total Return Index surged to new record highs in December. The US S&P500 is up +0.3% year-to-date, testing its all-time high with declining bond yields supporting the heavyweight Tech Sector, which has already posted fresh all-time highs even with Apple Inc (AAPL US) struggling. Bond yields continue to control markets and, most importantly, stock & sector rotation as investors second guess the future steps of major central banks.
We are making multiple changes to the Emerging Companies Portfolio
We are amending the Growth & Income Portfolios
A quiet session as expected today, most of the country preparing for Christmas rather than concentrating on markets, the ASX trading is a tight ~20pt trading range ahead of the 4-day break. This will be the final note for 2023, with normal programming recommencing on Monday the 15th January.
As was the case yesterday, the focus of this morning’s report is looking at levels to reduce market exposure for the Active Growth Portfolio. Note we are cautiously bullish on a number of the positions simply because we believe the current market advance is maturing into January.
A few in the market scratching their heads this morning about the 1.5% decline in the last few hours of trade overnight, multiple reasons at play, with a big put options position as one of them, along with strong US economic data, however, the market has run hot and some profit taking met low volumes and selling fed on itself. The ASX though did better than the 1% decline futures were implying, the low for the day set early on before fighting back to end mildly lower, still ~750 points/ 11% above the 6751 low set on the 30th October. With one trading session to go before Christmas, the ASX200 is up 6.6% before dividends.
As the ASX200 Accumulation Index (including dividends) pushes to new all-time highs, MM is looking for areas to de-risk slightly after being fully invested through November and December. Today, we have briefly focused on ten stocks in alphabetical order, reiterating if/where we are considering moves, although obviously if we do press the defensive button, it’s unlikely we will sell all/part of more than 2/3 positions within the portfolio.
The march continues with positive momentum remaining in the latest broad-based rally today. 10 of the 11 sectors closed higher, Tech being the one in the red today thanks to weakness in some of the larger constituents. As was the case yesterday, the ASX200 hit levels not seen since February this year, trading through 7550 late in the day before cooling off on the close.
