The ASX 200 finished a choppy week up +0.4% with the rate sensitive utilities (+3.6%), real estate (3.6%), healthcare (+3.5%) and consumer discretionary (2.4%) sectors leading the markets gains. Action on the index level was relatively quiet, however, it was anything but on the stock front with 10 stocks falling by more than 10%, for an average decline of mare than 16% while only two stocks rewarded investors with double digit gains - it felt like fund managers were actively tweaking their portfolios as we enter the December quarter.
The ASX finished the week on a firmer note, extending its recovery after a volatile few sessions. Market breadth improved, with 9 of 11 sectors higher and ~70% of ASX200 stocks finishing in the green.
The ASX 200 fell away on Thursday afternoon to close down -0.8%, with weakness in the influential banks and heavyweight miners again driving the index lower while further bargain hunting was evident in the rate-sensitive end of town, although not with any great gusto as would be expected when the index is tumbling toward a fresh 4-month low.
The ASX 200 failed to hold onto its early gains on Wednesday ultimately ending the session down -0.1%, smack in the middle of the day’s trading range, with the influential banks and miners dragging the index lower despite over 60% of the main board closing higher. The rate-sensitive stocks again caught our eye bucking the trend with all major retailers and real estate stocks outperforming the broader index.
The ASX finished slightly lower today snapping a four-day winning streak as the market struggled to follow another record session on Wall Street. A majority six of 11 sectors finished higher, though the heavyweight sectors weighed on the bourse overall. Healthcare and Real Estate led the market, while Financials and Materials were the biggest drags.
The ASX advanced +0.6% on Tuesday on relatively broad based gains with over 60% of the main board closing higher. However, it was the rare combination of strength in both materials and financials that dragged the index higher, contributing ~86% of the days advance from a points perspective. What caught our eye was some buying coming back into some of the consumer facing stocks, ironically just as consumer confidence data plunged towards a 30-year low - there’s nothing quite like the combination of rising interest rates and cost-of-living pressures to squeeze everyday Australians, particularly when the holy grail of household wealth - property prices, are falling at the same time.
The ASX moved higher for a third straight session with some confidence returning to the market. The rally was driven by a very different mix of stocks to what we saw on Wall Street overnight, with Real Estate leading despite bond-yields remaining elevated, and Materials also looking strong. Technology was the only significant detractor, failing to mirror the move seen overnight in the US as the tech-focused Nasdaq surged to new all-time highs.
The financial press keeps telling us that stocks are expensive and a correction is inevitable, yet US markets remain within 1% of new all-time highs. The chart below tells an interesting story about the two factors pulling the S&P 500 in opposite directions through 2026. Blended forward EPS estimates have surged 35% since year-end, reflecting strong corporate earnings, particularly across AI-related companies, yet the index itself is up only +11.8%.
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