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The ASX200 again posted all-time highs last week as a little profit taking in the banks was more than offset by broad based buying across the market led by the IT Sector as bond yields slipped lower removing the headwind which has been suppressing the growth stocks through most of 2021 – our focus today will be on these very same bond yields which have dictated the sector rotation over the last 6-months.
The ASX200 has maintained its upward momentum closing up +2.1% for June on Friday, as we’ve pointed out in previous reports a nudge of 7400 is likely in the next few weeks assuming local stocks match the average gains over the last 4-months.
It’s been another solid week for stocks as we head into a blissful long weekend, the ASX 200 closing at a new all-time high with the IT stocks offering most of the support today.
The ASX200 continues to hover around the 7300 area with stock / sector rotation still the main game in town, Thursday saw funds drift out of the banks and resources into the beneficiaries of lower interest rate such as IT,
A positive session for the ASX with the property stocks grabbing the performance batten today and running with it while the IT stocks also joined the fray – Energy the only sector that struggled after a solid recent run.
The ASX200 started to show a few hairline cracks yesterday with strength early on sold into as ~60% of the index finished lower after hitting another all-time high at 7334.
A new intra-day high was set for the 5th consecutive day today, however early strength was sold into and the index eventually closed lower. Staples were the main drag on the index, closing almost 1.5% lower on softness in heavyweights Woolies and Coles. Materials found some form with strong base metals and iron ore prices, though gold names lagged the sector.
We are making some amendments across most portfolios as foreshadowed in this mornings note.
The ASX200 continues to rally steadily with the seasonal concerns around May well and truly behind us, since Februarys low ~6500 the index has gained well over 3% p.m. with no obvious end in sight, if anything the moves gathering momentum after clearing the 7000 hurdle. Tuesdays 10-point gain wasn’t particularly exciting but with meaningful sellers remaining firmly on the sidelines it’s more a matter of which sectors drag us higher with the IT & Healthcare stocks more recently best on ground i.e. the growth plays.
An positive day overall for the market with the index edging higher, although we are starting to see some transition from the ‘reflation’ trade back into the technology and healthcare stocks that are starting to enjoy consolidation in global bond yields, a theme we’ve been flagging in recent reports.
