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The ASX200 got within 8 points of all-time highs yesterday morning however by 4.10pm the market was 63pts off the milestone that MM has been calling for months. Not even a spectacular $20bn private equity bid for hospital operator Ramsay Healthcare (RHC) was enough to offset the profit-taking that crept into the dominant banks and resources throughout the session. Overall, a weak day with the market feeling a touch tired having already rallied +6.39% in March & is now up ~1% in April.
The local market had a strong rally early in the session, coming to within 8 points of the all-time high before 11AM. Strength in the financials sector early helped carry the index, however, selling in the heavyweight sector weighed on the index as the session went on. Commodity facing sectors took a backwards step on the back of a global growth outlook downgrade. Healthcare was the standout, though stock-specific factors carried the sector. Overall the index gave back 55pts intraday to close just marginally higher.
Today I turn 40, I’m not normally big into birthdays however they say this one is meaningful, a time for reflection, to focus on what comes next. For me, hopefully, more of the same with a few more camping holidays, a bit more time with the kids, and I also feel like I need some adventures, things that offer a challenge both physically and mentally and that’s going to be a priority over the coming years. For Market Matters and our wider investment management business, there are some really exciting developments about to happen. Our vision for Market Matters has always been to create a great digital advice platform…
A solid session for local stocks today, albeit a very quiet one with the market rallying early before treading water late in the day. Minutes from the RBA’s April meeting showed a growing inclination to raise rates sooner than originally thought which underpinned higher bond yields – Healthcare & IT stocks came under pressure as a consequence while Energy & Materials remained firm.
Firstly, I hope you all had a great Easter break, a beautiful 4 days in Sydney where the sun was certainly appreciated. The ASX 200 added +0.61% for the shortened week with Gold & Travel-related stocks populating the leader board. We’re now 19 days into the market’s 2nd strongest month of the year with a gain of just 0.32% to speak of. The ‘old world’ is smashing the new with Utilities up 5.44% while the Information Technology sector languishes, down another 4.01% for the period. Bond yields the major influence on respective sector performance however as US quarterly reporting season heats up it’s important to remember MM’s preferred path for the coming period.
The market traded in a reasonably tight range for much of the session and importantly held firmly above 7500. Four sectors managed gains of more than 1% with tech the big surprise as yields fell despite strong price index numbers earlier in the week. The commodity focussed sectors of materials and energy were also strong performers. Financials struggled but couldn’t hold back the broader index.
Since hitting a high of 7573 on the 5th of April, the ASX200 has drifted lower as it consolidates the gains achieved in the best March since 2009. The patience of the bulls is being tested however in MM’s view it remains just a matter of time before new highs are achieved for local stocks. Bond yields had a rest yesterday which relieved some pressure on sectors that cower at their ongoing advance while the resources & energy stocks continued to enjoy strength in their underlying commodity prices.
Most stocks rallied today pushing the index higher as we edge towards the four day Easter break. Materials & Energy did the heavy lifting more than offsetting weakness amongst the property stocks. While the traditional April rally has so far been elusive, March was up ~7% so understandable that stocks have consolidated that move, however, the index now looks well-positioned for an assault higher, we think.
We are amending our Flagship Growth & Active Income portfolios.
The ASX200 disappointingly reversed some early optimism yesterday to close down 0.42% however there was a lack of interest in the market shown through light volumes ahead of the Easter break. Despite this continued consolidation, MM’s view is unchanged into the end of April / early May:
