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The ASX200 fell over 0.5% yesterday courtesy of some broad-based weakness, by the close over 70% of the main board closed lower with all 11 sectors retreating. The main mover on the day was AGL Energy (AGL) which tumbled -10.33% following a weak 1H result and downgrade to full-year guidance, a disappointing combination however overall it was a fairly quiet session that again saw the index traverse the psychological 7500 area.
Stocks pulled back today with 70% of the ASX 200 down and all sectors finishing in the red. Results continue to flow and there is clearly some caution around what comes next from an economic perspective – stocks that have been strong leading into updates at most risk given elevated expectations.
The ASX200 maintained its recent love affair with the 7500 area on Thursday finally closing up +0.35% with the influential financials offering the main support e.g. Suncorp (SUN) +4.6%, Macquarie Group (MQG) +2.6% and National Australia Bank (NAB) +1%. The winners and losers were evenly matched but it was the smaller end of the main index which dragged the chain hence the index managed to post a small gain e.g. Elders (ELD) -5.9%, Healius (HLS) -5.4% and United Malt Group (UMG) -4.1%.
The ASX was higher today as company earnings took over the baton from central banks as the key driver of stocks, and overall, they were positive. The influential sectors of Financials + Materials led the line, a positive combination here rarely leads to a down day at the index level, while Energy stocks bounced back from recent weakness.
MM is switching from CBA into ANZ
Tuesday was all about the RBA and the unexpected hawkish comments delivered by the RBA Governor. Stocks reversed lower in a matter of minutes after the 230pm decision as investors contemplated rates breaking above 4% before Christmas, the ASX200 finished the day down -0.5% on broad-based selling which saw less than 30% of stocks post gains.
The market opened lower in line with overseas indices, however, buyers stepped up mid-morning and things turned positive, for a while at least. That was until Philip Lowe came to the parapet at 2.30pm and raised rates by 0.25%, taking the cash rate to 3.35%.
The ASX200 ended Monday down -0.25% following Friday’s weak session on Wall Street coupled with follow-through selling in the pre-market S&P500 futures. The weakness was broad-based with less than 30% of the main index closing in positive territory with the winner’s circle being dominated by the energy and gold names – more on the precious metal later following Newmont’s (NEM US) bid for Newcrest (NCM).
Some fireworks to kick off the trading week with a bid for Newcrest (NCM) by larger global competitor Newmont (NEM US) while 1H23 reporting season is getting underway.
The AFR proudly announced in “Street Talk” yesterday afternoon that $20bn Newcrest Mining (NCM) might be about to receive a bid with the likely suitors being touted as either Barrick Gold Corp (GOLD US) or Newmont Corp (NEM US), either way, all we can say is bring it on! – we hold 5% of our Flagship Growth Portfolio in NCM.
