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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.
The ASX200 continued with its impressive April rally yesterday enjoying a strong turnaround from early losses to finally close up +0.5%, less than 2% below its 2020 all-time high.
Buyers were out in force today helping the local index recover an early dip before pushing on to a new 12 month high. Energy was clearly the standout with a number of market commentators talking up the demand piece overnight.
The ASX200 enjoyed a strong Wednesday reaching fresh post COVID highs in the late afternoon, only in January & February of 2020 has the local index ever traded higher. When we look at the market internals things currently look good with over 65% of the market rising, plus 10 stocks surged over 10% compared to the days weakest link Credit Corp (CCP) which only fell -3.7%.
It was a positive session overall today, choppy in parts however by the end the buyers were well and truly on top closing the market near daily highs.
We are making some amendments to the majority of portfolio’s largely with the same view – to increase cash into strength. We’re not turning bearish the market but we do want more flexibility than we currently have going into a seasonally weak period.
The ASX200 is now 2-weeks into both April and Q2 of 2021 and we’re finally seeing some action on the index level with the local market up almost +3% making fresh 12-month highs in the process, the same again on the upside and the bulls will be cheering fresh all-time highs! Yesterday was another fairly uneventful session across Asia with only 55% of the Australian market closing positive, with the exception of the BNPL space roaring ahead, led by Zip (Z1P) which rallied +17%, it was also a fairly muted start to the week under the hood.
A flat session from an overall index perspective today as the ASX200 consolidates above last week’s breakout level – this is ultimately a fairly constructive trading pattern if it continues. Data from China was strong today in an absolute sense, although export data was weaker than expected. This grew 30.6% YoY (from a low base) showing that the global economy is back buying Chinese stuff, although the market was looking for +38% growth. On the flipside, Imports were well ahead of expectations coming in at 27.7% versus the 17.6% growth expected, this is a positive read through for Australia.
The ASX200 drifted -0.3% yesterday following US futures lower during our time zone, losers managed to outnumber winners 2:1 on a day when there were very few standout winners e.g. Cochlear was the best performing stock and it rallied less than 3%.
Low volumes seen across the market today with fundies seemingly focused on quarterly company updates that are starting to come through to get a read around where to next.
