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We are making some amendments to the majority of portfolio’s largely with the same view – to increase cash into strength. We’re not turning bearish the market but we do want more flexibility than we currently have going into a seasonally weak period.
The ASX200 is now 2-weeks into both April and Q2 of 2021 and we’re finally seeing some action on the index level with the local market up almost +3% making fresh 12-month highs in the process, the same again on the upside and the bulls will be cheering fresh all-time highs! Yesterday was another fairly uneventful session across Asia with only 55% of the Australian market closing positive, with the exception of the BNPL space roaring ahead, led by Zip (Z1P) which rallied +17%, it was also a fairly muted start to the week under the hood.
A flat session from an overall index perspective today as the ASX200 consolidates above last week’s breakout level – this is ultimately a fairly constructive trading pattern if it continues. Data from China was strong today in an absolute sense, although export data was weaker than expected. This grew 30.6% YoY (from a low base) showing that the global economy is back buying Chinese stuff, although the market was looking for +38% growth. On the flipside, Imports were well ahead of expectations coming in at 27.7% versus the 17.6% growth expected, this is a positive read through for Australia.
The ASX200 drifted -0.3% yesterday following US futures lower during our time zone, losers managed to outnumber winners 2:1 on a day when there were very few standout winners e.g. Cochlear was the best performing stock and it rallied less than 3%.
Low volumes seen across the market today with fundies seemingly focused on quarterly company updates that are starting to come through to get a read around where to next.
April is one of the most bullish months of the year for equities with an average gain for the ASX 200 over the past 10 years of 2.5%, while 80% of the time the market has finished the month higher.
Last week was a strong one for global equity markets and it was particularly pleasing to see some slight local out performance with the ASX 200 adding 3.01% to settle just shy of 7000. The broad S&P 500 ended the week up 2.71% while the technology stocks pushed the Nasdaq 3.12% higher. European stocks were also strong, the UK based FTSE 100 also adding 3.01% ahead of lock downs being eased this week.
A very quiet end to a strong week for stocks with the market oscillating in a very tight ~30pt trading range. Information Technology stocks finished the week as they started, top of the leader board, while Woolies & Metcash dragged the Staples sector lower as Coles brings back the red finger….prices down down down signifies an escalation in the competitive landscape as they look to claw back lost market share. Not a lot else to get excited about today.
It was an impressive session by the ASX yesterday given the tepid leads from overseas markets and although Asian stocks were higher, it felt like the local index was the dominate force.
The ASX 200 hit a new 52 week and post pandemic high today, finally cracking above the 7000 handle to hit an intra-session peak of 7012.
