Archives: Reports
A poor way to end a tough month for stocks, with the ASX getting knocked lower from lunchtime onwards, eventually losing 1.2% having been higher in early trade. It wasn’t all bad news with Materials & Energy closing the session higher, however, when the banks fall by an average of 2% it’s always going to be tough going from an index perspective.
The ASX200 finally regained some of its much-needed Mojo yesterday finally managing to close up 92-points even after a sell-off into the close as US futures reversed sharply lower – again! Unfortunately, we remain confident that volatility will remain elevated into October but as we look through the noise MM is looking for ongoing signs that the market’s internal strength and the underlying sentiment are improving. Yesterday’s broad-based gains were a step in the right direction with well over 80% of the main board closing up on the day led by the resource stocks but with selling extremely thin on the ground we actually saw the index challenge the 6600 area early in the day.
A snapback for the ASX today rallying 1.4% although late selling took some cream off the top with the index up ~2% at the peak. Bank of England (BoE) intervention in the bond market saw yields lower and stocks higher overnight while the GBP also rallied, however late today the Pound was back on the skids re-testing recent lows and that led to some selling in stocks – US Futures went from flat to down 0.70% in the last hour of our session.
The ASX200 fell another -0.5% yesterday after trading higher in the morning only to be buffeted lower following comments from the Whitehouse which threw cold water on any potential currency intervention to cap the rising $US plus Apple (AAPL US) announced it had shelved plans to increase iPhone production due to faltering demand, the 2 pieces of news sent US Futures sharply lower, dragging the SPI and local stocks down in its wake. There’s no doubt that at the moment the Fed and most fellow central banks have little concern about the negative impact of their rhetoric on stocks. As we said on Wednesday morning “further news-driven turbulence feels…
Local equities initially defied weak overnight leads to trade high for the first hour. The rally turned sour before midday though with news hitting the wires that the Whitehouse would turn down any talk of currency intervention, and local retail sales data came in higher than expected to further lift the odds of a 50bp hike from the RBA at the next meeting. Coal stocks rallied on the back of strength in the energy markets on news the Nord Stream gas pipelines into Europe…
The ASX200 fought valiantly on Tuesday to finally close up +0.4% on tentative buying and a strong lead from US Futures during our day session however it needed a bounce by the Resources & Energy Sectors to lift the nervous market which still saw the losers outnumber the winners. As subscribers know we increased our exposure to stocks yesterday – I apologise to anyone who didn’t receive the SMS notification, we’re confident this issue will be resolved by Friday:
MM is buying Disney (DIS US)
Stocks snapped a 3-day losing streak today that had seen the ASX 200 pullback -371pts / 5.5%, back down testing the June lows, off 12% this calendar year to date. While today’s bounce back was far from convincing, we are seeing signs of some improvement with a number of sectors/stocks attracting strong buying. When we stand back and consider the overarching positioning at the moment, with the consensus being very bearish, we think a bounce from these levels is the more probable outcome.
We are amending the Flagship Growth & Income Portfolios
The ASX200 tumbled another 105-points yesterday closing less than 1% above this year’s low posted back in June, Monday’s selling was specifically focused in the Energy & Resources Sectors e.g. Whitehaven Coal (WHC) -14%, Woodside Energy (WDS) -5%, IGO Ltd (IGO) -7.6%, South32 (S32) -7% and BHP Group (BHP) -5.2%. Interestingly the market’s weakness wasn’t very broad-based for such a disappointing session with over 25% of stocks and 45% of sectors managing to close in positive territory – more on the divergence later.
