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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 reminded us again on Tuesday that there’s a lot of life left in this post GFC bull market as it recovered over 100-points of Mondays plunge to close only marginally down for the week after 2 very volatile sessions. Tuesday saw over 80% of stocks rally with most areas of standout strength almost mirroring where the selling was focused on Monday.
A bullish session overall for the ASX today keying off a positive night in US markets where optimism quickly returned as US Fed Chair Jerome Powell reiterated the central banks view that inflation is transitory which the market interprets as rates lower for longer.
The ASX200 followed Fridays weak lead from global indices finally closing down -1.8% with the heavyweight Banking Sector surrendering some of their recent impressive gains, it felt like a session of aggressive profit taking with the stronger performers over the last 3-months suffering the most e.g. Commonwealth Bank (CBA) fell -5.4% after rallying over +15% over the last 3-months.
A tough way to start the week with the ASX off -133pts, a ~5% fall in CBA the biggest weight as the broader financial space led the declines.
The ASX200 pushed ever higher last week taking its advance to ~12% year to date but following sharp losses in the US on Friday this week’s going to start off on a very different footing, the SPI futures are calling the local market to open down -1.5% this morning, wiping out over half of the months gains in one fell swoop.
The ASX200 managed to maintain its upward momentum through last week posting fresh all-time highs on Wednesday as the IT & Healthcare Sectors led the gains i.e. the growth names. Conversely the Resources Sector endured a tough week at the office as a very strong $US produced a significant headwind for the underlying commodities, noticeably large cap names such as OZ Minerals (OZL) -11% and South32 (S32) were caught up in the selling, 2 stocks MM likes very much at lower levels.
A day of aggressive sector rotation played out to end a solid week for the ASX, a good session overall for the MM portfolios with our tilt from resources into technology bearing fruit today as the local technology sector rallied ~3.5% led by a ~9% move in Zip Co (Z1P) while the materials / resources drifted lower.
The ASX200 initially ignored a weak lead from US indices yesterday following the Feds announcement that it now expects 2 rate hikes by the end of 2023 – a very logical view in our opinion considering the extremely strong economic recovery over the last year.
Strength across the financials & IT stocks was not enough to offset weakness amongst the Telcos, Materials & Energy stocks as 138 companies in the ASX 200 closed lower on the day.
