Archives: Reports
The day kicked off with a promising +50pt open though it was short-lived as a steady rotation from the banks to resources swept through the market after a supposed resolution to US-China trade negotiations was reached triggering a –90pt swing from start to finish as we closed at the low of the day.
The ASX 200 experienced another quiet session on Thursday as the market followed the choppy consolidation, with an upside bias, that we expected at the start of the month.
A very quiet session for Aussie stocks today, though the recent trend continued with buying of weakness, although the dip was only small this morning. Xero (XRO) came back online post cap raise, down ~9% early but saw strong buying during the session to recover 50% of its loses.
The ASX200 struggled to make any meaningful headway on Wednesday, even after the Dow closed up over 500 points and we received a particularly market-friendly inflation print.
MM is buying a new stocks in the International Equities Portfolio
The market held on to yesterdays rally today, finishing flat, as strength continued in the banks while the miners lagged as we approach the EOFY i.e. the trends that have persisted in FY25 are extending, however, what comes in FY26 is now firmly on our radar. While it’s hard to see anyone selling CBA before the 30th June and wearing a big tax bill, CBA’s +50% gain this year (relative to its ~4% earnings growth) pushing it up to a ~12% index weight in the ASX 200 is simply extraordinary. They say trees don’t grow to the sky, but CBA is certainly having a good crack, pushing its valuation to ~29x and yield down to 2.5%, closing today at a new record of $191.40!
The ASX200 surged almost 1% on Tuesday, taking the index back within 1% of its all-time high. Optimism that the worst of the Middle East conflict is already behind us drove the market higher on broad-based buying, which came with a definite “risk on” twist.
A strong rebound for the ASX following news of a ceasefire overnight, though it seems missiles continued to fly today, and while it knocked the ASX off its morning high, the concern was short lived.
The ASX200 was trading down almost 1% at midday on Monday before buyers returned, trimming over half of the morning’s losses. The song remains the same, with buyers of weakness emerging, and again, banks led the way, e.g. Commonwealth Bank (CBA) +1%, and Westpac (WBC) +0.6%. Considering the geopolitical backdrop, Monday’s 0.4% pullback was a stoic performance, which, in our opinion, illustrates that many investors, across the whole spectrum, have been caught underweight in stocks following the market’s aggressive post “Liberation Day” V-shaped recovery.
We were the first major market to absorb the weekend’s strikes on Iran, and while stocks fell, it was far from aggressive, with the ASX trading down ~80pts at the lows before the dip buyers emerged, pushing the index up ~50pts from the morning nadir.
