Archives: Reports
The bears re-emerged today with the ASX down 1.2% after a solid run in recent weeks. Banking stocks were the biggest drag at the index level, it’s been a while since we’ve seen the sector down ~2% in a session.
The ASX200 endured one of its worst days for months on Monday with broad-based selling washing through the main board although it was the banks and IT stocks which caught our eye on the downside. Buyers of the dip evaporated as concerns around inflation & rate hikes returned to haunt the recent bulls of tech/growth names not helped by Australian 10-year bond yields testing their 1-month high, back above 3.5%.
A soft session to kick off the new trading week with all sectors finishing lower, although a big variance in the magnitude of moves. As of this morning, 58% of the market had reported results and so far, they have been better than feared with the beat-to-miss ratio running at 3:2, however, the big test comes this week with more domestically focussed consumer stocks out with numbers.
Last week saw some cracks appearing in the recent advance by risk assets as bond yields continued to rise and recession concerns increased, noticeably in the European region, not a great backdrop for stocks but the ASX still managed to edge higher helped by a strong +7% rally by market heavyweight BHP Group (BHP):
The ASX200 felt tired for much of last week but it still managed to rally & close at fresh 10-week highs courtesy of some solid buying across the resources stocks e.g. Whitehaven Coal (WHC) +11.2%, BHP Group (BHP) +7%, South32 (S32) +3.5% and IGO Ltd (IGO) +2.7%. Conversely 2 sectors which weigh on the index and general sentiment dragged the chain
A subdued end to a positive week for the ASX with Energy & Material stocks the only real shining light while there were a few hits and misses from reporting, MM chalking up our first ‘landmine’ in TPG Telecom (TPG) which dampened what was an otherwise strong week across portfolios.
The ASX200 experienced broad-based selling on Thursday with less than 25% of the index up on the day but the market heavyweights helped avoid any meaningful weakness on the index level i.e. Commonwealth Bank (CBA) +1.4%, BHP Group (BHP) +0.7% and CSL Ltd (CSL) +2.3%. Thursdays -0.2% decline hardly made a dent in the market’s recent advance, again we saw the market rally well from its early lows reducing the losses by ~70% in the process as the path of least resistance is still clearly up!
A weaker session today for the ASX with some hits and misses from companies that reported. Energy stocks were strong, Coal names continuing their recent momentum while IT fell on higher bond yields and some weaker commentary from heavyweight Xero (XRO).
The ASX200 again made fresh 10-week highs yesterday helped by strength from the consumer-facing stocks but the buying was broad-based in nature with almost 70% of stocks on the main board advancing. The sector which stood out the most to MM were the retailers with all 8 in the ASX 200 Retailing Sector advancing. While we own discretionary retail stocks across three of Market Matters portfolios, our Flagship Growth portfolio doesn’t which feels like an omission given the better than feared outcomes being…
Following a stronger than expected result from retail goliath Walmart overnight, the retailers led the ASX higher today with both the consumer discretionary & consumer staples sectors leading the line, while a decline by CSL weighed on the healthcare sector. Overall, reporting continues to be better than expected, Aussie corporates showing resilience and guidance is holding up in a general sense, meaning that dips are being bought at the index level.
