Archives: Reports
While it was far from convincing, the ASX chalked up its first positive session for FY25 today, with the sectors that have been ‘doing it tough’ contributing most to the gains, plus of course the IT stocks that remain well supported. Uranium shares rallied and so too did the coal companies as they chalk up strong gains for the week so far, while weakness across the banks tempered enthusiasm at the index level.
The ASX200 drifted lower on Tuesday, ending the session down -0.4%. Investors found the sidelines the most appealing option ahead of the US Jobs Report on Friday, after Independence Day on Thursday, and the troublesome French election looming on Sunday. Over 60% of the main board fell on the second day of the new FY, with only the Energy Sector offering some bullish resistance. However, losses were limited outside of the lithium (Li) stocks – we will look at these further later on.
Back-to-back losses for the ASX to kick off FY25 with broad-based selling knocking 10 of 11 sectors lower, though only one sector fell by more than 1%. On the flip side, Energy was again the standout with Coal stocks breaking out amid supply disruptions.
The ASX200 started the week in stoic fashion on Monday, reclaiming over 70% of early morning losses to end the first day of July down -0.2%. It was a rare session for 2024 when the miners were the backbone of the index while the banks, tech, retail, and real estate stocks were the weak links. However, with FY25 only one day old, we’re not paying any attention to stock/sector rotation. Locally, the economic data remains tepid at best, which might help the RBA resist calls for a rate hike in August:
A softer session to kick off FY25, though the worst of it was seen early as US Futures bounced thanks to improving sentiment in France, with CAC Futures +2.8% ahead of their open. Materials stocks the standout today, plenty of them look like they’ve found support after a tough 3 months for the sector, with Coal stocks the standout.
The last six months have been an obvious “game of two halves,” that the US Value and Growth Indices illustrate perfectly; the Growth Index has surged over +23%, while the Value Index has edged up just +4.5%, and the broad-based S&P500 signed out to the first half of 2024 up +14.5%. The growth stocks benefitted from the boom in AI and the accompanying surge by the “Super Six,” whereas the Value Index was weighed down by a heavy Materials Sector. However, there’s not a lot of money to make focusing on the last six months; we need to look forward to what comes next. First, here are some interesting statistics which aren’t exciting for the swelling number of bears.
The ASX200 finished the week down 0.4% but still managed to advance +0.9% for June; overall, local equities experienced another choppy week dominated by moves on the stock/sector level. However, while the index appeared to have experienced a fairly quiet week, it was a very different story in credit markets following the hotter-than-expected CPI spring on Wednesday:
A positive session to round our FY24 for the ASX, a year of two halves characterised by considerable divergence across sectors. The strong have grown stronger, with the Financials led by the banks surpassing even the most bullish expectations, while tech was again a standout. Overall, it’s been another solid year at Market Matters, we’ve welcomed aboard a wonderful number of new members, underpinned by solid performance on the portfolio side. We start FY25 with a clean sheet on Monday, and we’ll continue to work hard to deliver for our community of investors. Thank you to all who have taken advantage of our end-of-year offers – we’re thrilled to have you on board.
Today is the final day of FY24. The ASX200 has advanced almost 8%, which translates to above 13% inclusive of dividends. It hasn’t felt that strong since March, but the numbers don’t lie. However, under the hood, it has very much been a game of two halves, with investors pushing winners and valuations ever higher while stocks residing in the “naughty corner” have found it very hard to escape; some examples of performance in FY illustrate the significant polarisation of performance and as we said yesterday, why we love equities, and Active Investing
It was a very bullish day despite the ASX closing lower. Stocks were hit early as the hangover from yesterdays hotter inflation print worked through, however the 10.30am low was met with strong intra-day buying, the ASX 200 rallying +105pts with more stocks actually finishing up than down, plus, much of the property sector traded ex-dividend. Tech led the line, though resources, healthcare and retailers caught our eye for the right reasons.
