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The ASX200 rallied strongly yesterday following a good result and subsequent surge by Commonwealth Bank (CBA) – the company beat market expectations by around 5% which led to a 5.6% advance by Australia’s 2nd largest stock. The bank will be trading ex-dividend, $1.75 fully franked next week which must be very tempting for the yield hungry investors. The sentiment which emanated from CBA’s result was far reaching with 87% of stocks posting gains, only the Energy & Materials Sectors slipped slightly after…
A tepid start to trade this morning however the buyers stepped out of the shadows around 11.30am and pushed the market up +80pts from the lows, the IT stocks leading the charge with some impressive gains from the ‘on the nose’ sector while a strong result from Commonwealth Bank (CBA) underpinned a rally amongst the financials. All in all, the bulls won on the day with the ASX 200 now up +510 points / +7.5% from the low set on the 27th January.
Tuesday saw the ASX200 rally over 1% with more than 70% of the index closing in positive territory but it was the gains in the stocks / sectors where it mattered that pushed the index back towards 7200 i.e. the banks, BHP and CSL all rallied which outweighed another weak session by some tech names. BHP now makes up more than 10% of the ASX200 and its 18.5% rally in 2022, supported by gains in iron ore & energy, has certainly cushioned the falls in the tech space.
A bullish day for local stocks with the market supported by the dominate sectors, when Materials +2.2% & Financials +1.36% take spots 1&2 on the leader board it’s hard for the market to do anything but rally. The laggards were again the IT stocks while the Staples are continuing to lag. Overall though, a much more bullish session than overseas + local futures implied.
The ASX200 put in another solid performance yesterday to rally over 60-points from its mid-morning low to close down just 0.1%, bargain hunters continue to surface when we see limited negative leads from US futures although a couple of times during our session we saw how easily the local market gets spooked when the S&P500 futures started to edge lower i.e. this definitely remains a nervous market. The Energy Sector was again the top performer rallying 1.6% while the Healthcare and Real Estate Sectors…
A very volatile Monday for the ASX with the market down sharply (-74pts) early on only to claw back the bulk of the decline by the close to finish only a few points into the red. The financials were soft following ANZ’s update while the travel stocks enjoyed clarity around boarder opening with Australia set to open up to fully vaccinated travelers on 21st February.
Last week saw 2 major macro headwinds weigh on stocks but overall we felt risk assets held up extremely well with the ASX200 & S&P500 both managing to rally 1.8% even as investors became more nervous & twitchy by the day. While confidence is certainly mixed MM sticks with our view that equities have found or are “looking for” a low albeit one which might only last a few months:
The ASX200 produced another solid performance on Friday to close up 0.6% following an awful session on Wall Street which saw the Dow fall over 500-points and the tech based NASDAQ plunge more than 4% as earnings misses by Meta Platforms (FB US) -26.4% and Spotify (SPOT US) -16.8% crushed optimism that the worst was largely behind the growth stocks. Over previous weeks we had already seen household names Netflix (NFLX US) and PayPal (PYPL US) hammered taking their recent corrections to more than 40% as earnings and outlook misses compounded the already negative sentiment towards tech as bond yields rose. The maths are easy when stocks like Alphabet (GOOGL US) & Amazon (AMZN US) beat expectations they rally around 10-15% whereas those that miss, and there are more of them, are plunging 20-40%!
Pre-market futures were indicating a difficult end to the week however some better than expected results after the US market closed meant early selling was subdued. Buyers won the rest of the session and a demand in the match helped the index finish on the intra-day high. Today’s gain helped the index post it’s best week since August last year, snapping 3 weeks of losses.
We felt the ASX200 put in a stellar performance on Thursday to fall less than 10-poinst as US futures fell away during our time zone – poor results from the likes of Meta Platforms, the old Facebook (FB US), and Spotify (SPOT US) after the US market closed more than reversed the gains during their day session e.g. Mark Zuckerberg’s Meta Platforms (FB US) was already down well over 20% in New York late trade. The ASX Tech Sector followed the negative US lead closing the day down 5.9%, by far the worst performer – more on this later.
