Archives: Reports
A positive session to end a positive FY21 today with the ASX adding 11pts, although it was up more than ~50pts in early trade before sellers took hold and sold the market off into the close – the match out seeing a further ~10pts ripped from the market as end of FY year book-squaring took hold.
Join Portfolio Manager James Gerrish & Analyst Michael Clark as they take a deep dive into Uranium Company Paladin (PDN) in the final episode of this series doing a deep dive into 6 stocks MM likes.
We start by looking at Uranium more broadly, the difficult past and optimistic future for a commodity that will be important in a decarbonized world.
The ASX200 fell early yesterday only to recover virtually all of the losses after midday to close down just 0.1% – how many times have we written that in the last 12-months! Almost 50% of the Australian population being thrown back into a COVID lockdown has been taken in its stride by the local market illustrating the inherent buying into any weakness.
A decent fight back for the ASX today after a weak open – the IT sector was strong after a poor session yesterday, the volatility in some parts of that sector is incredible and speaks to the level of short term trading that happens there, particularly in BNPL stocks.
The ASX200 put in an admirable performance on Monday to close basically unchanged even as the country slowly but surely slipped back into a COVID induced lockdown.
The Match Out: Stocks flat as focus on virus lockdowns intensify, Temple & Webster (TPW) rallies 10%
A weaker open for the ASX today however after the initial lockdown shock the market was bid up and closed unchanged. Lockdowns are obviously a headwind for the economy however they do push back the chance of rate hikes which is a key focus of markets right now.
Today’s report as its name suggests usually focuses on the macro-economic factors driving financial markets both today and into the future, however as Sydney goes into a 2-week full lockdown and the rest of Australia feels in danger of following suit the deteriorating local virus picture looks highly likely to dominate both the end of the this financial year, & the start of FY22 – NSW represents ~30% of Australia’s GDP.
The ASX200 gave back some ground last week, even after a strong session on Friday, however considering almost 1 million people are back in lockdown in Sydney a loss of under 1% feels to me like an admirable performance. The current measures are already flagged to cost the economy in excess of $300m with the potential to worsen significantly if we fail to contain the Indian Delta variant of COVID.
Another choppy but overall positive session for the ASX today as some parts of Sydney enter a week’s lockdown.
The ASX200 finished a choppy session slightly lower yesterday dragged into the red predominantly by some weakness in the banks and healthcare stocks but considering the escalating Sydney COVID outbreak it was a fairly lacklustre affair.
