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A tough way to start the week with the ASX off -133pts, a ~5% fall in CBA the biggest weight as the broader financial space led the declines.
The ASX200 pushed ever higher last week taking its advance to ~12% year to date but following sharp losses in the US on Friday this week’s going to start off on a very different footing, the SPI futures are calling the local market to open down -1.5% this morning, wiping out over half of the months gains in one fell swoop.
The ASX200 managed to maintain its upward momentum through last week posting fresh all-time highs on Wednesday as the IT & Healthcare Sectors led the gains i.e. the growth names. Conversely the Resources Sector endured a tough week at the office as a very strong $US produced a significant headwind for the underlying commodities, noticeably large cap names such as OZ Minerals (OZL) -11% and South32 (S32) were caught up in the selling, 2 stocks MM likes very much at lower levels.
A day of aggressive sector rotation played out to end a solid week for the ASX, a good session overall for the MM portfolios with our tilt from resources into technology bearing fruit today as the local technology sector rallied ~3.5% led by a ~9% move in Zip Co (Z1P) while the materials / resources drifted lower.
The ASX200 initially ignored a weak lead from US indices yesterday following the Feds announcement that it now expects 2 rate hikes by the end of 2023 – a very logical view in our opinion considering the extremely strong economic recovery over the last year.
Strength across the financials & IT stocks was not enough to offset weakness amongst the Telcos, Materials & Energy stocks as 138 companies in the ASX 200 closed lower on the day.
The ASX200 continues to grind higher and although it only closed up 6-points yesterday it was the first time we broke above the psychological 7400 barrier as the banks, and especially CBA, continue to rally strongly.
After punching up to another all-time high this morning above 7400, the market lost steam during the afternoon session to close largely flat on the day.
We are tweaking the Flagship Growth, Active Income & the International Equities Portfolio’s today
Join Portfolio Manager James Gerrish & Analyst Jono Higgins as they do a deep dive into buy now pay later company Z1p Co (Z1P). The stock has been under some pressure in recent times, however both James & Jono believe it’s good buying around $7 for investors that can handle some volatility & have a growth mindset.
