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The ASX managed to start the week in the black despite a shaky start today thanks to ~1% gains in both financials and materials. Bond yields were climbing throughout our session however it didn’t have an impact on the broader market with value stocks holding up well. There was plenty of corporate news coming through with a number of takeover offers in play.
Equity markets are often referred to as weighing machine since a famous investor from Omaha, Nebraska coined the phrase almost 50-years ago way back during the awful bear market of 1973-74. In our opinion the current market uncertainty and sector rotation is being caused by investors continually re-evaluating whether the strong post COVID economic recovery is going to be enough to offset the looming headwind of rising interest rates plus the increasing political inconsistencies from…
The AX200 enjoyed a strong end to the week making fresh highs for October on Friday as the unusual combination of Tech and Resources banded together to drag the index into positive territory for the week. Suddenly the statistics & seasonality factors are combining nicely for the bulls:
As we make new highs for the month on the 15th the strong likelihood is we’ve not only seen the low for October at 7157 but also the quarter which has very bullish implications.
The average quarterly range since the COVID outbreak is well over 500-points implying from extrapolation that there’s a strong likelihood that the ASX200 can achie
It’s been a very good second half of the week for the ASX as some positive company announcements drove 8 stocks in the ASX 200 up more than 10% on the week, fortunately for MM we hold 4 of them across portfolios and that’s led to a good pocket of outperformance. Today saw a carbon copy of yesterday in terms of both the IT & Materials sectors underpinning the rally while Utilities were the only area to finish the day lower.
The ASX200 closed up 0.5% on Thursday although it struggled after 3pm giving back almost half of its gains as fairly heavy selling rolled through the SPI futures. Investors still enjoyed over 70% of the main index close up on the day but some weakness in the banks was enough to drag the market back towards 7300, historically the banks are strong from now through until November with ANZ, NAB and Westpac all trading ex-dividend in the first half of next month but after such a stellar advance over the last year it may be too much to ask for standout ongoing strength…
A positive session for the ASX today underpinned by strong gains in the IT and Material sectors – higher commodity prices and lower bond yields a catalyst however we also saw stock specific updates that were generally very positive. Overall, a solid session, particularly for how Market Matters portfolios are positioned.
The ASX200 closed yesterday at the same level it reached in early June i.e. more than 3-months later the market remains unchanged albeit after a failed foray above 7600 in August. We’ve witnessed plenty of sector rotation in the last quarter even if the underlying index has failed to make any discernible headway, the choppy swings between various stocks and sectors has been consistent in its inconsistency but over the months there have been a couple of standouts:
Another session that closed in the red for the ASX, it’s 3rd straight but again it was more about the influence of the sectors that fell. Given financials & materials which account for ~40% of the market ended down, it was actually positive to see the market off only 8 points implying that a greater volume of stocks finished the session in the green. As we’ve been writing in recent notes, the market is taking a plethora of bad news largely in its stride & a market that holds up in the face of negative news flow generally has underlying strength.
The ASX200 had a fairly quiet Tuesday finally closing down 0.26% in a lackluster session which saw no stocks rally, or fall by more than 5%. The Tech Sector continued to struggle even on a day when the Energy names took a well-deserved breather. Over the day US S&P500 futures appeared to direct traffic on the local market i.e. when they rallied early in the morning the ASX200 advanced around 30-points only to reverse the early gains as the US futures followed Asian indices lower after Sinic Holdings (2103 HK) became the latest Chinese real estate firm…
A lackluster session for the ASX today, initially up but that didn’t last long although the sell-off was hardly aggressive. Healthcare bounced and so too did the supermarkets highlighting the risk off sort of session.
