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Tuesday saw the Australian market slip -0.8% on broad selling with 70% of the index closing in negative territory but come 4pm we remained around 7400, just as we did when MM delivered its previous Portfolio Positioning Report back on the 22nd December. After the NASDAQ’s excellent recovery on Monday night we thought the Australian Tech Sector would have regained some of their recent losses but it still struggled with most stocks reversing lower after a promising open, it feels like local investors will take more convincing to overcome inflation…
A weak session for Aussie stocks today underperforming most Asian markets while US Futures were also fairly muted throughout our session. Weakness was widespread with only the Material stocks closing a few ticks into the green. Supply chain issues are starting to hurt and this is evident amongst the supermarkets and the companies that supply them, Inghams (ING) the latest to flag production problems.
The ASX200 drifted marginally lower yesterday with the value names continuing to support the index while the broader index drifted lower under the weight of increasing concerns around rising bond yields and inflation. While the banks were firm the Resources Sector was the standout for MM with influential stocks like BHP Group (BHP), RIO Tinto (RIO) and South32 (S32) all advancing over 2% – MM expects more of the same over the coming weeks but if we are correct this year will not be a one trick pony.
It was actually an interesting trading session today at the stock level despite the index finishing little changed. The high value (tech & others) were sold off fairly hard this morning before most bounced while there was also some aggressive buying in some of the ‘dogs’ of 2021, a strategy that often pays dividends – commonly called the ‘Dogs of the Dow’ where investors buy the underperformers of the past 12 months.
It’s great to be back on deck and a special welcome to our new subscribers who came on board over Christmas. As refresher to new and old, our report schedule is as follows:
A positive session for the final day of trade before Christmas, a shortened session and volume was a pittance of the norm however positive non-the-less as we all embark on the joys of a festive feast. Today it was the Retailers and the Real-Estate stocks vying it out on the leader board up 0.80% and 0.57% respectively, while on the flipside, the Utilities and Consumer Staples lagged, the latter being the only sector to finish in the red today.
Yesterday saw the ASX200 illustrate yet again that COVID was “old news” with regards to financial markets as it rallied 0.3%, to its highest close in 2-weeks even as new case numbers spiralled – as most people know NSW and Victoria are tightening restrictions from Christmas Eve as the Omicron strain sets new records. The local markets remains stuck to the 7400 level, only 3.2% below its all-time high, dismissing the surging case numbers as no more than a short-term irritant.
The usual Christmas lull has now taken hold of markets and while the ASX edged higher today following a positive night in the US, volumes were light and conviction was low. The Utilities sector +0.70% was best on ground today supported by the Industrial stocks which edged 0.63% higher, on the flipside, the IT stocks gave back some of yesterday’s gains down by -0.92% while the supermarkets also fell.
The ASX200 closed higher yesterday in subdued trading and with only 2-days remaining until Christmas Day it’s hard to imagine anything new after stocks have traded sideways for 6-months – we may have received a plethora of economic and humanitarian news since May but equities simply haven’t moved. Wednesday only saw 56% of the ASX200 rally but with a 2.6% advance by the Tech Sector it was enough to offset an intra-day reversal in the iron ore names as the bulk commodity backed off from fresh…
A choppy but marginally positive session for the ASX today as volumes peter out ahead of the Christmas break – actually having a full week of trade before Christmas doesn’t happen very often and it seems like some in the market have taken off early – if all the red dots on my Bloomberg are anything to go by. Today the IT stocks did best with another takeover approach for Link (LNK) while a bounce back in Afterpay (APT) also helped. APT has…
