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The market continued higher today despite weakness generally in overseas leads, with the ASX 200 hitting another post pandemic high of 7122 with strength in CSL underpinning the healthcare sector, while Materials & Financials were also strong.
Today we’re tweaking 3 MM Portfolios inline with comments made in the Morning Note today.
The ASX200 continues to oscillate between 7000 and 7100 as ongoing stock & sector rotation maintains the market equilibrium – yesterday saw only 55% of the index rally but when the resources rally strongly plus CBA / CSL post gains the index is almost guaranteed to be well supported.
A solid day for the ASX building on smallish overnight gains to rally from midday onwards.
The ASX200 closed marginally higher yesterday as stock & sector rotation remained the main game in town, yesterday was all about the banks and although only 30% of the index closed positive enthusiastic bank buying was enough to keep the indexes head above water.
If it wasn’t for the banks & Telstra today, it would have been a poor session on the ASX however when the average gain for the banks is over 2% and Telstra (TLS) rallies ~3% it provides a decent backbone for the broader market.
The ASX200 kicks off the infamous May this morning having already enjoyed gains of 6.6% year-to-date with the Banking Sector leading the way following the sharp rise in global bond yields in Q1.
The ASX200 ended April in a very different tone to the majority of the Easter month, local stocks closed down -0.8% with almost 70% of the index closing in the red. However even a weak Friday wasn’t enough to make a meaningful dent in the months performance with April still closing up +3.5% taking the annual gain to just over +6.5% year-to-date. The banks have dominated 2021 with ANZ Bank (ANZ) and Westpac (WBC) both up almost 30% while the local tech stocks has seen some of the biggest losses, a very different story to recent years and the US market where the NASDAQ again made fresh all-time highs last week.
The last day of April saw the market end ~1% lower as traders ruled a line under a very strong month.
The ASX200 closed up 0.25% yesterday as it continued to grind higher, the speed of its ascent is reminiscent of my kids getting ready for school but there’s no signs of failure at this point in time – our preferred scenario remains a classic seasonal pullback through May & June but the bulls still remain in control at this juncture with 55% of stock rallying on Thursday, led by strength in Healthcare & IT stocks both of which prefer a lower bond yield environment.
