Archives: Reports
A weak session today with stocks lower for a third session in the past four, travel-related shares were hit by a decision to lock down Melbourne (Harry had to get a quick flight home this afternoon) as the outbreak of the U.K. strain of the coronavirus increases – Qantas (QAN) fell -4.81%.
The ASX200 experienced a lacklustre Thursday in what’s been a very quiet week on the index level – with today’s trading still to go we’ve only seen a meagre 80-point range over the last 4-days.
The ASX200 regained most of Tuesdays losses yesterday with some positive reports helping the overall sentiment, overall a good performance considering CBA reversed down -1.5%. Australia’s largest bank actually rallied early in the day following their announcement of a larger than expected dividend which should put the bank in good stead to deliver a yield in excess of 5% when grossed up for franking, not bad when many term deposits are struggling to pay a tenth of this – CBA may need a “rest” after rallying over 20% in the last 3-months but the tailwinds remain in play leading to upgrades to CBA earnings forecasts from analysts this morning.
A weaker session for the ASX today and this feeds into our view that the market is due a pause, a rest after a good run however that’s a very micro-outlook and one that we won’t put too much weight behind. Reporting again the key with some hits (TLS, NCM), misses (AMP, DOW) & meets (AGL, ASX, GUD, MFG, TCL).
The tech sector led the market higher today with MM holding the two best performing stocks in the ASX 200, a nice duo with Z1P +12% & Megaport (MP1) +7% – we cover both below. Reporting season now front and centre locally and we have four holdings reporting results tomorrow, two in the growth portfolio and two in the income portfolio while Commonwealth Bank (CBA) was out with numbers this morning and closed down 1.5%.
The ASX200 gave back a little ground yesterday as reporting season became the main game in town, 70% of stocks closed in the red and it currently feels like the market has started the week with elevated expectations towards company performance which unfortunately leaves plenty room for disappointment. The selling was indiscriminatory with all 11 sectors of the ASX200 closing lower but the worst on ground were generally stocks that have shone through most of 2021.
The ASX200 continued its impressive start to 2021 with another +0.6% gain yesterday although beneath the surface things were very mixed as the defensive Real Estate and Utilities Sectors were sold-off fairly hard i.e. the markets clearly positioning itself for a strong economic recovery post COVID and by definition higher bond yields and eventually some inflation.
The local market couldn’t match overseas gains made overnight as the ASX pulled back from recent highs. As reporting season ramps up there seems to be a lot of optimism built into a number of sectors and even meets are seeing some heavy-handed selling. Banks were on the back foot today ahead of CBA’s result tomorrow.
Another solid session to kick off the trading week although it’s not without frustration given the bid for Vocus (VOC) from a consortium led by Macquarie Infrastructure a few days after we sold the stock in our growth portfolio!! Markets can slap you down sometimes and this was certainly one of those instances, however softening the blow was Zip Co (Z1P) which rallied well today (+12.9%) hitting $10.33.
We’re tweaking the Flagship Growth Portfolio transitioning from one commodity stock into another, we see better upside in our new purchase.
