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The market pushed up and closed above the 7500 handle today making a new all-time closing high in the process and is now up ~70% from the panic low (4402) on the 23rd March 2020. While it’s easy to conclude that the market has run too hot, earnings have been the driver of the move rather than just an expansion of multiples, or in other words, the rise is justified. Index earnings per share (EPS) peaked pre-COVID at 345, dropped to 250 and is now sitting at 375…
The ASX200 drifted lower yesterday although it was primarily a lacklustre session by the banks which caused the -0.2% decline. Under-the-hood the local tech space remained the hot place to be after being ignited by the $39bn takeover bid for Afterpay (APT) on Monday, the biggest corporate play in history, perhaps we’re finally going to see the local IT stocks address their major underperformance when compared to the US FANG’s & Co through 2021 – more on that later.
The ASX 200 slipped 0.2% from yesterday’s all-time high today although the technology sector was strong thanks to more buying amongst the BNPL stocks offset by weakness in the Energy & Materials sectors. Central bank chief Philip Lowe surprised the market this afternoon by pushing on with a reduction in their weekly bond buying program (i.e. easing back support) despite the economic impact of lockdowns. The market thought this…
We are taking a nice profit on a relatively expensive stock in the portfolio today, reallocating into a value orientated company after a recent pullback.
The ASX200 open well as expected yesterday but for a pleasant change it continued to rally strongly with 80% of the market closing up on the day. There were a number of obvious standouts on Monday including the $39bn bid for Afterpay (APT) and Santos (STO) raising their offer for Oil Search (OSH) but a few other less obvious moves also caught our attention:
A very bullish session for the market breaking out through all-time highs and closing just below the 7500 handle for the ASX 200. The range bound market we’ve experienced since early June has been broken, the catalyst being more M & A, this time in the technology space as large US tech / payments company Square makes a play for Afterpay (APT) – more on that below. That move propelled the IT sector 6% higher on the session however the buying was broad based with all sectors enjoying a positive day.
The ASX200 waved goodbye to July in lacklustre fashion on Friday, the first month of FY21/22 only managed to travel a meagre 79-pints / 1.1% to ultimately close down just 2-points, it felt like a quiet choppy almost “nothing like” month and ultimately that’s exactly what it was on the index level although there were a view interestingly developments unfolding beneath the hood:
The ASX200 ended last week unchanged after an early assault on fresh all-time highs, the large cap miners supported the index while most other stocks & sectors closed in the red for the week on Friday. Interestingly the migration from growth to value stocks is currently unfolding in earnest while bond yields continue to plumb multi-month lows as the escalating Sydney lockdown threaten…
A softer session to end the week and month for Australian stocks with the IT sector back in the cross hairs of the selling, particularly the BNPL names with Afterpay (APT) & Zip Co (Z1P) down ~5% a piece. For the month, the ASX has added 1.09% led by the Material sector which rallied 7.13% versus the IT sector which was down 6.88%. For the week, the market was little changed however it is finding some clear resistance…
The ASX200 performed another 180 degree pirouette yesterday, one which was almost good enough for the Tokyo Games! The market continues to remind me of a washing machine spinning stocks and sectors in almost random direction with the underlying upside bias the only constant. The Tech stocks were best on ground yesterday after struggling on Wednesday, every stock in the sector…
