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The ASX200 enjoyed a strong finish to the week rallying +1.08% on broad-based buying following the strong night on Wall Street. The futures selling reappeared around 10.30 am but it felt they were finishing off a large order with the weakness exhausted into lunchtime. While over 75% of the market contributed to the day’s advance it was solid gains in the consumer discretionary & large-cap miners plus ongoing strength in the banks that caught our eye. Again the market is knocking on the 7200 door, a break clear on the upside next week might see some decent buyers return to compound the last 2-week’s gains.
The ASX200 experienced a tough Thursday falling -0.7% as the previous sessions selling in the futures morphed into a 2-day affair, ironically under the hood it was a clear “risk on” session as we saw weakness in the leading supermarkets while the Tech Sector rallied over 1%. Unfortunately it now appears that the semblance of strength in our growth stocks will need another catalyst after Canadian suitor Telus pulled its $1.2bn bid after just a few hours, were used to takeover bids failing but this is getting crazy, only a few weeks ago a similar thing happened with CVC’s bid for Brambles (BXB). Interestingly we saw 6.4mn shares change hands…
The ASX200 fell away slowly but surely throughout today finally closing down 49-points after being up +27-points in early trade, it appears the leftover selling in the SPI futures we mentioned this morning was still around in earnest drawing a line in the sand around the psychological 7200 level for the main index i.e. a close above here will look good technically. Selling was broad-based as you would expect when its futures led, over 60% of the index closed in negative territory. The only shining light was the Tech Sector and closely…
The ASX200 eked out a reasonable +0.4% advance yesterday although unfortunately the gains were halved in the match courtesy of some aggressive selling in the SPI Futures – clearly the short-term money had little faith that the US market could recover from the negative sentiment delivered by Snap Inc’s (SNAP US) ~40% plunge on Tuesday night. The local rally on Wednesday was again very stock / sector specific with the banks, energy and gold stocks looking good while tech was again clobbered. Same trend, different day.
The ASX managed a 26 point gain today on the back of strength in the financials and consumer staples sectors. While finishing in the green, the market did give up ~30 points in the last 90 minutes of trading with futures falling further after the cash market closed. The Consumer Discretionary sector slipped -0.6%, one of three sectors to close down on the day, in the process it failed to pace with the stronger more defensive Consumer Staples sector. Technology was the black sheep of the market today though, falling nearly 3% with valuations still in question.
The ASX200 drifted lower yesterday afternoon largely in sympathy with weak US futures and regional equity markets but overall it was another fairly lacklustre day considering yet another gaffe by Joe Biden towards Taiwan and the severe downgrade by Snapchat (SNAP US) which saw the stock plunge over 30% in late US trade. The local market hasn’t moved in over 12-months hence it makes little sense to get too bearish / bullish around current levels but we still think stocks are starting to absorb bad news in a more constructive fashion and the markets internals are improving, let’s hope we’re not looking at things through rose coloured glasses!
The ASX200 experienced another quiet session today with the financials trying hard but ultimately failing to deliver a positive day for investors. The influence of the banks on the index was very apparent with over 70% of stocks on the main board falling but the index closing less than 0.3% lower. Overall we felt it was a solid performance considering US futures were down more than 1% when we closed courtesy of Joe Biden’s 5th Taiwan gaffe annoying both China and the White house plus Snap Inc’s (SNAP US), the social media company…
The ASX200 closed mildly higher yesterday with the election already taking a backseat to global economic news, on Monday stocks embraced the news into the weekend that China plans to reinvigorate its economic growth with over $US5 Trillion of stimulus after the “COVID Zero” policy has sent many industries into a lengthy slumber. The world’s 2nd largest economy is now looking to shift to a productivity-led economy from an investment led growth model that has underpinned the country for around 30-years – more on this later.
The ASX200 tried hard early to deliver a post-election rally for local investors but a 1% pop by the S&P500 futures wasn’t enough to instil lasting confidence locally and after a 50-point advance by 11am we drifted lower throughout the day to close only 3-points higher. The selling felt more akin to a lack of interest as opposed to meaningful negativity with a drop by the banks & healthcare names largely offsetting gains in the Resources Sector.
The polls finally got one right, “ScoMo’s” popularity issues plus a backlash against their climate control policies condemned the Liberal Party to a crushing defeat on Saturday although interestingly the Labor Party also suffered a drop in its primary vote as the Independents steamrolled to victory in a number of key seats. As we’ve said previously MM has no political bias and we wish the new Prime Minister elect all the best over the 3-years ahead, especially with the tricky economic backdrop looming on the horizon specifically a potential recession as central banks hike rates to fight inflation.
