Archives: Reports
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.
MM is making a number of changes across portfolios.
Yesterday we said that it was unlikely the ASX200 could breach the psychological 7100 area before CBA trades ex-dividend this morning but we didn’t count on BHP hitting the ball out of the park with its FY’22 result – Tuesday saw the index rally 41-points to close at 7105 with BHP contributing almost 60% of the market’s advance. However, Commonwealth Bank (CBA) will trade ex-dividend this morning, $2.10 fully franked, which if all else is equal is like to take the market back towards 7050 in a quick fashion.
A strong open to trade this morning with the market buoyed by a very positive update from BHP, however, the best of it was seen early before a few sellers crept out of the shadows mid-morning. Stepping back for a moment, the ASX 200 peaked at 7624 on the 20TH April, coincidentally on my 40th birthday, before falling 1217 points / 16% to 6407 on the 20th of June – hopefully not a broader omen on life! From that low, the market has rallied 724pts…
The ASX200 knocked on the door of its August high yesterday before finally closing up +0.45% on broad based buying which saw over 67% of the main board close in positive territory. If it hadn’t been for a disappointing report from Bendigo Bank (BEN) which fell over 8% dragging much of the sector down in sympathy we could have been testing 7100 but with Commonwealth Bank (CBA) trading ex-dividend $2 fully franked on Wednesday it may prove a touch too much to ask this week.
The Match Out: Market higher to kick off a big week of reporting, what’s our take on Carsales (CAR)?
A positive session to kick off the new trading week, one where reporting really starts to ramp up. Property & Consumer Discretionary stocks the driving force today, clearly the outcomes being achieved here are better than feared and stocks are rallying from a low base, while Energy & Financials underperformed.
Last week saw some inconsistencies / fascinating moves across financial markets which we believe were largely driven by investor positioning & sentiment but this might not continue if MM’s preferred scenario unfolds for bond yields. Last week was all about the US CPI and Wednesday’s number showed a much-welcomed slowdown in inflation which sent most indices soaring to their highest levels in over 3-months:
The ASX200 struggled last week considering the theoretically strong tailwind from a weak US CPI print and no major blow-ups from the local reporting season, the index did manage to scale fresh 9-week highs but by Fridays close it had only managed to close up +0.2%. The Resources Sector helped keep the index in positive territory, significantly assisted by BHP’s bid for OZ Minerals (OZL), but what probably caught most investors off-guard was a more than 2% pullback by the tech & healthcare sectors even after the deceleration by the main US inflation indicator.
