Archives: Reports
The ASX200 enjoyed a solid Wednesday session with the combination of strong earnings and aggressive chasing of some recovery stocks ultimately leading to a +0.4% advance – 12 shares rallied by 5%, and more, while only 4 names fell by the same degree. A couple of standout themes on the stock and sector level caught our attention yesterday with an underlying belief that Australia will be 70-80% vaccinated and trading basically as usual by Christmas shining through:
A strong rally in the IT sector with support from the resources underpinned a solid day of trade for the ASX, Wisetech (WTC) +28% a standout although it was up ~50% at one stage, while money also found it’s way into the ‘re-opening trade’ with travel stocks doing pretty well. Another solid day of reporting, we cover some below while Harry & I talk about Monadelphous (MND), Bravura (BVS), HUB 24 (HUB) and Zip Co (Z1P) in our weekly video…
The ASX200 continued its quiet start to the week finally closing up +0.2% with the action remaining firmly under the hood with 11 stocks rallying by +4%, or more, while 5 names fell by the same degree. High volatility through reporting season is nothing unusual with investors delivering 2 very clear and different messages to corporate Australia:
The market edged higher today it what was the biggest day of reporting thus far, Energy the standout sector following Crude’s rally overnight + a timely note from MM this morning while the Material sector also bounced back from recent weakness. It was rocks & diamonds today for MM is terms of results, the diamond in the Flagship Growth Portfolio being HUB 24 (HUB) up ~8% while Monadelphous (MND) was anything but, down ~14%.
The ASX200 fought hard to bounce yesterday finally closing up +0.4% with over 60% of stocks closing in positive territory. The interest rate sensitive sectors largely outperformed with IT and Real Estate catching my eye but the more interesting action was on the stock level with 13 stocks rallying by over 4% while 10 names fell by the same degree. Overall this volatility on the company level appears reflective of both reporting season and the “twitchy” nature with which investors are reacting to corporate news as the market remains close to its all-time high.
A positive start to the trading week with IT, Real-Estate & Materials sectors offering most support to the broader market. Reporting was again dominate with one trend becoming more obvious the more companies report, that being very cautious / non-committal guidance. While it seems most have started off FY22 with good momentum, COVID resurgence globally plus of course lockdowns locally are having a big impact on company’s ability/desire to forecast.
We are making 3 changes to the Flagship Growth Portfolio Today
The ASX200 endured a rare fall last week with the heavyweight Resources and Banks inflicting the damage, interestingly under the hood the stock and sector performance was very mixed with a number of shining lights from some less influential stocks. There was some eye catching declines by many major names from within the Value Sector which created a meaningful headwind for the local index, arguably the ASX fought well to only drop -2.2%:
The ASX200 struggled last week finally closing down 168-points / 2.2% as the Resources Sector fell from grace with a bang e.g. BHP Group (BHP) -16%, RIO Tinto (RIO) -10.9%, OZ Minerals (OZL) -9.5% and Independence Group (IGO) -10.6%.
We actually saw 6 of the 11 market sectors rally last week but when the mighty banks and resources fall the ASX is always going struggle and last week was no exception.
The ASX came out of the blocks on the front foot this morning after a tough week, however the best of it was seen in the first hour before the market sold off for the rest of the day. The defensive sectors did best while continued weakness in commodity prices weighed on the Material stocks, although we are seeing signs of stabilization there. For the week, the ASX 200 fell -2.2% with Materials -9.6% & Energy -7.7% the two biggest drags while the Staples sector added ~3% to top the leader board.
