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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.
The ASX200 has enjoyed a very impressive start to February which looks well positioned to continue today following a solid conclusion to the week on Wall Street. Last week the fuel came from a combination of the RBA and the start of earnings season with the later likely to dominate proceedings this week especially when CBA step up to the plate on Wednesday, they’re set of numbers will not only tell the story of the banks performance but also give an excellent read through for the whole Banking Sector and Australian economy.
The ASX200 has just enjoyed its best week in almost a year as February kicked off with a bang advancing +3.5% with the heavyweight Financials leading from the front in 2021 e.g. CBA is now up 25% in just 3-months as it heads into its half-year result on Wednesday. At MM we believe that 2021 /22 is going to provide some of best investing opportunities in history for the informed and open-minded investor.
The local market surged into the weekend, more than covering yesterday’s pullback to close at its highest level in 11-months. The panic low from early Monday is now an incredible 323pts/5% behind us now in less than a week’s trade as the market swiftly brushed the bearish case of the “Gamestop Effect” in favour of the bull case of Central Bank dovishness and improving economic data. Today that meant the market focussed on beats on initial jobless & continuing claims in the US.
The ASX200 took a breather yesterday after its stellar start to February although a -0.9% pullback is relatively minor considering the impressive advance from Mondays low. While losses were fairly broad-based with 75% of stocks closing in the red the selling didn’t feel particularly aggressive although 2 of the recent top performers Virgin Money (VUK) and NRW Holdings (NRW), who both made fresh 6-month highs this week, did encounter some fairly active profit taking – stock & sector rotation shouldn’t surprise subscribers this year.
The air was once again thin above the 6800 level on the ASX today with stocks pulling back from post pandemic highs. Retailers were in focus following a strong set of numbers by Nick Scali (NCK) while AGL Energy (AGL) showed why it’s been a good idea to avoid that dividend trap this year and last with a ~$3bn write down – from experience big write downs often happen at lows – more on both of these below.
The ASX200 enjoyed another strong February session yesterday rallying almost 1% to take the advance from Mondays low to 4.7%, not a bad way to start the month. The gains were broad-based with over 80% of the market rallying but Banks, Real Estate and Healthcare stocks caught my eye on the upside while conversely the Resources Sector took a well-deserved rest.
