Archives: Reports
Stocks kicked off the week on a very positive footing following the strong gains in Europe and the US on Friday but it was the sterling performance from the large cap miners that caught my attention e.g. BHP Group (BHP) and Fortescue Metals (FMG) both closed up over +3%. MM has been looking for some weakness in the Resources Sector to increase our exposure but its currently proving to be a long wait!
A risk on session to start the week with another 112 cases of COVID in NSW failing to dent sentiment early on. The market opened higher and did a good job of maintaining strength throughout the session. The resource stocks bounced back strongly, BHP up through $51 a standout and when the bulk of the sector rallies ~3% and banks also edge higher it’s hard for the market to do anything but rally.
The ASX200 continues to bounce around between 7200 and 7400 which considering the economic and social backdrop is an impressive performance in my opinion. The local index has rallied ~28% over the last 9-months yet the very real prospect of a damaging extended lockdown in NSW is being shrugged off by stocks, although both bond and currency markets are taking more notice:
The ASX200 feels like it’s been on a small rollercoaster ride of late but after rallying strongly into the close yesterday we finished off the week basically where we kicked off at the start of June i.e. there’s been lots of news on both the economic and social level but all stocks have done for the last month is rotate between sectors
A softer session to end the week for the ASX as ‘reflation wobbles’ hit the market to send stocks lower. Global growth expectations have taken a hit in the last 24 hours and as we suggested this morning, that’s being shown clearly through a decline in longer dated bond yields globally – a wobble rather than a change in trend in MM’s view. 154 stocks from the ASX 200 closed lower today with all sectors bar Energy finishing in the red
Yesterday saw stocks rally strongly early in the morning only to steadily decline from their mid-morning high as the value stocks reversed early gains to close down on the day – primarily the banks but the resources did close well below their intra-day highs. The bottom line is equities appear to becoming rattled by the worsening COVID picture both locally and overseas and whatever the path that the delta strain and others take – some important market points should be remembered:
A fairly muted session above the waterline today however lots happening beneath the surface headlined by a rally in Zip Co (Z1P) on reports in the AFR of a strategic buyer taking a 4% / ~$160m stake – more on that below while downtrodden Nuix (NXL) also saw some love with shares rallying today, albeit from very depressed levels.
Yesterday saw the local market rally +0.9% more than recovering the losses on Tuesday, the growth names led the line following US indices overnight who embraced the drift in US bond yields i.e. Tech & Healthcare. The stock and sector rotation continues while the ASX200 remains basically unchanged since the start of June, below are some of the names catching our eye for both good and bad reasons:
Another example today of the market looking wobbly only to see buyers step up into the slightest of dips as the ASX bounced back after yesterday’s decline.
Yesterdays was all about the RBA with a little NSW COVID news thrown into the mix with neither feeling particularly bullish for stocks.
