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The ASX200 endured a rare fall last week with the heavyweight Resources and Banks inflicting the damage, interestingly under the hood the stock and sector performance was very mixed with a number of shining lights from some less influential stocks. There was some eye catching declines by many major names from within the Value Sector which created a meaningful headwind for the local index, arguably the ASX fought well to only drop -2.2%:
The ASX200 struggled last week finally closing down 168-points / 2.2% as the Resources Sector fell from grace with a bang e.g. BHP Group (BHP) -16%, RIO Tinto (RIO) -10.9%, OZ Minerals (OZL) -9.5% and Independence Group (IGO) -10.6%.
We actually saw 6 of the 11 market sectors rally last week but when the mighty banks and resources fall the ASX is always going struggle and last week was no exception.
The ASX came out of the blocks on the front foot this morning after a tough week, however the best of it was seen in the first hour before the market sold off for the rest of the day. The defensive sectors did best while continued weakness in commodity prices weighed on the Material stocks, although we are seeing signs of stabilization there. For the week, the ASX 200 fell -2.2% with Materials -9.6% & Energy -7.7% the two biggest drags while the Staples sector added ~3% to top the leader board.
The ASX200 fell another -0.5% yesterday even with the number of winners & losers evenly balanced, however the influential Resources Sector was again smashed with heavyweights BHP Group (BHP), RIO Tinto (RIO), Independence Group (IGO) and Fortescue Metals (FMG) all falling by over 5%. Iron Ore and copper were down heavily during our time zone and not surprisingly this flowed into aggressive selling across ASX related stocks.
The ASX fell for its fourth-straight day weighed down by losses in the mining and financial sectors, the former hurt by further declines in BHP (-6.35%) while Fortescue (FMG) & Rio Tinto (RIO) were also down a similar amount thanks to a 6% decline in Iron Ore Futures during Asian trade today. FMG now a whisker from our $20 target while RIO at $107.17 this afternoon is below the $108 we flagged this morning.
The ASX200 opened lower yesterday but the “buy the dip” phenomenon that’s been prevalent post the initial coronavirus breakout played out through the morning, early losses turned into gains before the index drifted into 4pm, we ultimately closed down just 0.1% – its hard to argue with the bulls when they cite a mass of liquidity (money) sitting on the sidelines looking to accumulate / buy stocks into weakness. Wednesdays strength was broad based with well over 60% of stocks rallying and if it hadn’t been for a -7% drop in BHP, wiping 33-points from the index, we would have recovered half of Tuesdays aggressive down day.
A more muted session at the index level today with the ASX weak on open before recovering to trade around par for most of the session. Reporting dominated the news flow, some big hits but more incremental misses overall however it was BHP falling ~7% that attracted most attention with the move taking a massive 33 index points from the ASX 200…I haven’t seen that in a long time. A lot to play out here however there is now an arbitrage…
The ASX200 experienced it’s worst day in 2 months yesterday finally closing down 71-points as the banks and resources again fell as confidence continues to wane towards the global economy. The RBA echoed the markets concern that the Delta Variant might push Australia back into a recession as they considered further stimulus during their August board meeting– “The board would be prepared…
Stocks posted a second day of declines led lower by financials as CBA & IAG traded ex-dividend while weakness in metals markets overnight flowed to weakness amongst our miners today, BHP down ~1.42% ahead of its FY21 results due out shortly. The ~1% sell-off was the biggest in 2 months which shows the lack of volatility we’ve become accustomed to of late. Still, most focus was on a busy day of results with bigger declines booked by the ‘misses’ than rallies by the ‘beats’.
The ASX200 struggled yesterday as the two most influential sectors fell in tandem, Bendigo Bank (BEN) -9.9% led the Banking Sector lower while OZ Minerals (OZL) -3.9% took line honours for the major miners. The index itself fell only -0.6% although the selling felt more aggressive with 11 companies falling by over 4% while only one rallied by the same degree. . A couple of stocks which we hold in our Growth Portfolio and are hoping to add into weakness were on the …
