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The market gave up ground, though still managed to post a +97pt/1.36% gain for the week. A soft lead from the US driven by higher than expected inflation prints caused early weakness. Selling picked up throughout the morning thanks to a more aggressive tone from RBA Governor Lowe who said a rate rise this year was plausible, sending the market back below 7200 before some support kicked in. The ASX eventually closed 26pts off the intraday lows.
The ASX200 rallied 0.3% on Thursday although unfortunately it lost around 70% of its early morning gains as profit taking appeared to roll through the broad market with over half of the market finally closing down on the day. The local index has already rallied 2.3% this week and 4.5% this month hence its not surprising a few nervous investors / traders took some money from the table, remember it was only 2-weeks ago the market was in the middle of an 11% plunge that had most commentators discussing bear markets. Our best guess is the index now consolidates recent gyrations in the 7200-7400 region but overall our preference is…
A strong start to the day with buyers picking up where they left off yesterday afternoon. The ASX was carried back over 7300 for the first time in 3-weeks but ultimately failed to hold that level closing 48pts off the intraday highs. Tech was once again the winner, carried by strength in the larger index weights of the sector. Market heavy weights of Financials and Materials were also well bid, helping to ensure a green day for the index.
The ASX200 rallied strongly yesterday following a good result and subsequent surge by Commonwealth Bank (CBA) – the company beat market expectations by around 5% which led to a 5.6% advance by Australia’s 2nd largest stock. The bank will be trading ex-dividend, $1.75 fully franked next week which must be very tempting for the yield hungry investors. The sentiment which emanated from CBA’s result was far reaching with 87% of stocks posting gains, only the Energy & Materials Sectors slipped slightly after…
A tepid start to trade this morning however the buyers stepped out of the shadows around 11.30am and pushed the market up +80pts from the lows, the IT stocks leading the charge with some impressive gains from the ‘on the nose’ sector while a strong result from Commonwealth Bank (CBA) underpinned a rally amongst the financials. All in all, the bulls won on the day with the ASX 200 now up +510 points / +7.5% from the low set on the 27th January.
Tuesday saw the ASX200 rally over 1% with more than 70% of the index closing in positive territory but it was the gains in the stocks / sectors where it mattered that pushed the index back towards 7200 i.e. the banks, BHP and CSL all rallied which outweighed another weak session by some tech names. BHP now makes up more than 10% of the ASX200 and its 18.5% rally in 2022, supported by gains in iron ore & energy, has certainly cushioned the falls in the tech space.
A bullish day for local stocks with the market supported by the dominate sectors, when Materials +2.2% & Financials +1.36% take spots 1&2 on the leader board it’s hard for the market to do anything but rally. The laggards were again the IT stocks while the Staples are continuing to lag. Overall though, a much more bullish session than overseas + local futures implied.
The ASX200 put in another solid performance yesterday to rally over 60-points from its mid-morning low to close down just 0.1%, bargain hunters continue to surface when we see limited negative leads from US futures although a couple of times during our session we saw how easily the local market gets spooked when the S&P500 futures started to edge lower i.e. this definitely remains a nervous market. The Energy Sector was again the top performer rallying 1.6% while the Healthcare and Real Estate Sectors…
A very volatile Monday for the ASX with the market down sharply (-74pts) early on only to claw back the bulk of the decline by the close to finish only a few points into the red. The financials were soft following ANZ’s update while the travel stocks enjoyed clarity around boarder opening with Australia set to open up to fully vaccinated travelers on 21st February.
Last week saw 2 major macro headwinds weigh on stocks but overall we felt risk assets held up extremely well with the ASX200 & S&P500 both managing to rally 1.8% even as investors became more nervous & twitchy by the day. While confidence is certainly mixed MM sticks with our view that equities have found or are “looking for” a low albeit one which might only last a few months:
