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The ASX200 threatened a classic seasonal May pullback mid-month but a 3.5% pullback was all we got and Friday saw the bears toss in their towels pushing the index up to within 10-points of its pre-COVID all-time high. Under the hood we saw 75% of the market rally with the banks and resources contributing to bulk of the gains while the tech stocks were the only sector to close in the red. The mix of CBA rallying over +11% for the month to its fresh all-time high and the resources appearing to have found a near term low after their ~10% pullback all bodes well for the start of June.
With just one trading day left in May the local index continues to find buyers with local shares ripping into the weekend – setting a new record to close at 7179 thanks to a broad that rally saw tech as the only sector lower on the day.
The ASX200 had the quiet Thursday we flagged in the morning report with it finally grinding out a meagre 2-point gain as just 51% of the market closed positive, on the sector level the banks drifted which was more than countered by another strong session from the IT names and a solid bounce by the Resources Sector.
A similar session to yesterday played out today with strength once again being sold into at the index level as the market petered out into the close, finishing around par. Melbourne entering a 7 day lockdown didn’t help although I doubt that was the reason for the softening in the market. IT stocks again were the standout although we also saw the Materials recover from recent weakness to play a supporting roll.
We are adding to A2M
The ASX200 followed Commonwealth Bank (CBA) higher into lunch as the markets largest company joined the $100 club, the stock listed back in 1991 at $5.40 illustrating the power of long-term compound investing when you back the correct business.
A choppy session played out today with early weakness bought before a midday top was put into place, the afternoon was a soggy one with weakness across the commodity complex weighing on the broader market.
MM is making some amendments to our Income, Emerging Companies & International Equities Portfolio’s. NB: SMS alerts are reserved for changes to our Flagship Growth Portfolio
the ASX200 appears to have quickly put last weeks “May jitters” behind it as the index rallies towards both its 2021 & all-time high. Another day of Commonwealth Bank (CBA) scaling fresh levels certainly helped but the buying was broad based with 75% of stocks closing positive although I did feel it was more a lack of sellers that was the main market driver but either way the result’s the same, the post GFC & COVID bull markets remain intact.
A strong session saw the ASX trade above where it started the month as it looks to buck the “sell in May and go away” trend. The star of the show was Hub24 (HUB), which we own in the Flagship Growth Portfolio, rallying +8.89% without any news.
