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The market snapped its winning streak today with IT stocks feeling the most pain, although a drop of ~1 % is hardly a concern given the sector is up ~13% so far in April.
The ASX200 tried to follow Asian markets higher yesterday but some weakness across US futures generated some trepidation for investors and the Australian market ultimately closed basically unchanged.
A fairly quiet start to the week locally with the market oscillating in a tight ~30pt trading range, my ‘gut feel’ still implies the market is losing momentum, however there’s no obvious sell signals in place (yet). Resource stocks enjoyed another strong session followed by utilities while Energy was the biggest drag down more than 1%.
Last week saw the ASX200 push to a fresh post COVID high, finally ending the week less than 2% below its previous peak as local equities danced the bullish risk jig.
The ASX200 is thoroughly enjoying April and last year’s all-time high is now less than 2% away, our “gut feel” is the local index will fail to scale the 7200 area near future but we are far more optimistic moving forward. Under the hood last week was a mixed showing with banks ok but diversified financials strong while healthcare, gold, real estate and IT lead the gains i.e. the best performers were stocks that enjoy a lower interest rate environment.
Another quiet end to the week with the market closing marginally higher. China data was the main focus of the day with GDP missing estimates at18.3% vs 18.5% expected YoY.
The ASX200 continued with its impressive April rally yesterday enjoying a strong turnaround from early losses to finally close up +0.5%, less than 2% below its 2020 all-time high.
Buyers were out in force today helping the local index recover an early dip before pushing on to a new 12 month high. Energy was clearly the standout with a number of market commentators talking up the demand piece overnight.
The ASX200 enjoyed a strong Wednesday reaching fresh post COVID highs in the late afternoon, only in January & February of 2020 has the local index ever traded higher. When we look at the market internals things currently look good with over 65% of the market rising, plus 10 stocks surged over 10% compared to the days weakest link Credit Corp (CCP) which only fell -3.7%.
It was a positive session overall today, choppy in parts however by the end the buyers were well and truly on top closing the market near daily highs.
