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The ASX200 rallied strongly on Thursday helped by a bounce in US stocks, a couple of strong company reports and further corporate activity as Perpetual (PPT) and Pendal Group (PDL) look to have finally tied the knot – M&A was added to overnight as the next stage of the KKR v Ramsay Healthcare (RHC) saga was released, more on this later. Market sentiment was also helped by Japan looking to restart nuclear power as the idealistic alternatives fail to match the country’s energy demands – it’s been well over a decade since the 2011 Fukushima disaster hammered consumer confidence in nuclear power but time can heal many wounds.
A solid day for the ASX with Property and Energy stocks underpinning the move higher in what is the vortex of local company results.
Wednesday saw the ASX200 fight hard to recover some of the last few day’s losses with the index finally closing up +0.5%, just below the psychological 7000 level. It was a busy day on the earnings front for the ASX with sentiment buoyed by further strong company performances, over 80% of the stocks on the main board which reported earnings closed up on the day. While only 62% of the index managed to advance it was another strong performance from the miners which suppressed any intra-day jitters, the IT Sector also helped the cause as they followed the lead from an improved sector performance on Wall Street plus a +12.8% rally by Wisetech (WTC) helped sentiment.
The market recouped almost 50% of yesterday’s losses today thanks largely to companies reporting stronger earnings. Some big beats played out which helped to improve the overall tone of the market, the Energy sector once again leading the way although support also came from the IT and Material names.
Yesterday was a tough day at the office for stocks with the ASX200 falling -1.2% on broad-based selling which resulted in 80% of the main board closing lower at the indexes lowest close since July. The market opened on a bearish note following losses across US & European bourses but this time a mixed bag of corporate results wasn’t enough to stem the tide and stocks extended losses over the day to close on the session low, back under the psychological 7000 level. The markets painting a fascinating picture on 2 levels with bond yields still the controlling factor:
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
