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The market built on its ~90pt turnaround from yesterday’s low to add another ~57 points today as the sellers all but disappeared, giving way to some impressive moves, particularly in stocks that have struggled in recent times.
The ASX200 only closed down -0.3% yesterday after recovering well over 80% of the losses registered at lunchtime – it picked the US market well again.
A weak session for the ASX today as the market pulled back from recent highs, the IT & Energy sectors i.e. the growth / risk related areas were the weakest while we actually saw a number of sectors end the session higher.
The ASX200 had a bad day at the office yesterday underperforming most global indices as nerves appeared to flicker across investors headlights – the local indexes largest decline in April unfolded courtesy of some broad based selling which saw over 65% of stocks fall while on the sector level only the Telcos closed in positive territory.
The market snapped its winning streak today with IT stocks feeling the most pain, although a drop of ~1 % is hardly a concern given the sector is up ~13% so far in April.
The ASX200 tried to follow Asian markets higher yesterday but some weakness across US futures generated some trepidation for investors and the Australian market ultimately closed basically unchanged.
A fairly quiet start to the week locally with the market oscillating in a tight ~30pt trading range, my ‘gut feel’ still implies the market is losing momentum, however there’s no obvious sell signals in place (yet). Resource stocks enjoyed another strong session followed by utilities while Energy was the biggest drag down more than 1%.
Last week saw the ASX200 push to a fresh post COVID high, finally ending the week less than 2% below its previous peak as local equities danced the bullish risk jig.
The ASX200 is thoroughly enjoying April and last year’s all-time high is now less than 2% away, our “gut feel” is the local index will fail to scale the 7200 area near future but we are far more optimistic moving forward. Under the hood last week was a mixed showing with banks ok but diversified financials strong while healthcare, gold, real estate and IT lead the gains i.e. the best performers were stocks that enjoy a lower interest rate environment.
Another quiet end to the week with the market closing marginally higher. China data was the main focus of the day with GDP missing estimates at18.3% vs 18.5% expected YoY.
