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The ASX finished higher in a fairly quiet session today with around 65% of stocks in the green led by the Energy sector thanks to a rally in Oil prices overnight. This is a sector we have very little exposure to however we are looking for opportunities.
We are tweaking the international equities portfolio, selling a mining stock and buying a global payments company.
It already feels like a long week and its only Friday morning, the combination of being in lockdown and EOFY has been exhausting, the market itself is only down -0.6% so it’s certainly not any wild gyrations in stocks draining our energy levels.
The market kicked off FY22 on the back foot today with most sectors closing in the red.
A new financial year is upon us and if its only half as good as FY20/21’s it will still be well above the average performance of recent decades but with the tailwind of huge fiscal and monetary stimulus diminishing fast MM believes the next year is likely to be very different to the last one. Already in 2021 we’ve seen a noticeable migration back towards the value sector and in particular the banks which has helped the ASX200 rally +11% since January 1st i.e. the average gain of the “Big Four” banks has been +23.7% as they’ve embraced the prospect of higher bond yields.
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.
