Archives: Reports
The ASX200 experienced its worst 48 hours in many months to close out last week with waves of selling through the SPI Futures dragging the broad market lower – the ASX200 fell -3.8% from its Tuesday high. The brunt of the selling was born by the Resources and Tech Sectors with the former likely on increased recession fears whereas the latter came under pressure from rising bond yields and some profit taking into EOFY. There were some major names in the losers’ corner through the week while winners were far thinner on the ground e.g. on Friday less than 10% of the main board closed in positive territory,
The third consecutive session of pain for the local market, however, today’s move was felt across the region with Asian markets feeling the pinch. The index was down by more than 100pts late in the day before ticking up slightly on the close, though it wasn’t enough to stop the week from finishing at a new low for the last fortnight. Energy was a clear detractor to performance despite some weaker supply numbers out of the US tonight, instead, energy traders were focused on a slowing global economy while a surprise 50bps hike from the Bank of England overnight didn’t help with confidence.
It would have been very easy to change the structure of today’s report with the elevated volatility in many pockets of the ASX but we opted for 4 stocks that we are considering adding to/buying if we see further weakness over the coming weeks although obviously, this list may evolve depending on news flows and the respective performance of stocks we are monitoring closely and holding in our respective portfolios.
We are amending holdings in the International Equities Portfolio.
A dose of reality today with some broad-based selling right across the market, as aggressive selling knocked the ASX back from seven-week highs, the recently hot IT sector in the cross-hairs however over 90% of the market finished in the red. Asian markets were down as well, but not by as much while US Futures remained resilient, only trading marginally lower.
The Competition Tribunal gave some early Christmas cheer to Optus while frustrating both TPG Telecom (TPG) and Telstra (TLS) on Wednesday as it upheld the ACCC’s original ruling to block TLS from sharing mobile network infrastructure with TPG. An appeal is still a distinct possibility, especially as building mobile towers in regional Australia is not always commercially viable putting into question whether the consumer will benefit alongside Optus – perhaps they could have allowed it with some strict guidelines skewed in favour of the consumer?
The market snapped its seven-day winning streak today with ~60% of the market closing lower, led by weakness in the Energy stocks which succumb to Crude Oil’s decline overnight, while the consumer discretionary sector was hit by a downgrade from UBS. The afternoon session saw the most action as the market slid sharply lower into the close chalking up a bearish close.
We are making multiple changes to the Flagship Growth Portfolio
Tuesday saw the ASX200 embrace the balanced RBA minutes advancing almost +0.9% on broad-based gains that saw only 20% of the main board close down on the day. There were a few pockets of weakness on the stock level but as we’ve been saying for weeks the path of least resistance remains on the upside even following weak seasons on overseas bourses. Further stimulus from Beijing and the local market could be testing its all-time in a matter of weeks i.e. it’s less than 4 % away now.
A surprisingly positive session for the ASX today, courtesy of the RBA minutes that showed a July 0.25% rate hike in perhaps, not a fait accompli, with the RBA still more data dependent than the market had given it credit for. Bond yields fell after the 11.30 am release, and so too did the Australian dollar and that put a bid tone under the market which built on its impressive 6-day advance now totalling ~220pts/3%, chalking up a 7-week high in the process
