HomeReportsWhat Matters Today: 3 stocks MM likes if global inflation…
The ASX200 again made fresh 10-week highs yesterday helped by strength from the consumer-facing stocks but the buying was broad-based in nature with almost 70% of stocks on the main board advancing. The sector which stood out the most to MM were the retailers with all 8 in the ASX 200 Retailing Sector advancing. While we own discretionary retail stocks across three of Market Matters portfolios, our Flagship Growth portfolio doesn’t which feels like an omission given the better than feared outcomes being…
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.
Trump said he would take up to two weeks to decide on the US’s involvement in the Israel-Iran conflict, but it ended up being closer to two days after American bombers struck Iran’s three main nuclear sites.
The ASX200 finished last week down 0.5% in a lacklustre period on the index level that was characterised by tight ranges with an overall net downside bias as the proverbial “Can” was kicked down the road in the Israel-Iran conflict. The ongoing uncertainty in the Middle East helped the energy sector advance by +5.3%, while the materials sector was the standout loser, driven by gold and iron ore names. Elsewhere, it felt like we were starting to see early signs of jockeying for the tax man and book ruling off into the EOFY.
It was a mixed day on the ASX today with half the main board higher/lower with the banks and materials sectors doing some damage early but the buy the dip mentality well and truly in play as we saw a significant grind higher through the session amounting to a +43pt move from the low of the day to the close.
The ASX 200 slipped another 0.1% on Thursday, with the song remaining the same on the stock & sector level. CBA scaled new highs, trading through $183, while weakness in the large-cap iron ore miners was enough to ensure the index closed mildly lower.
Another resilient session for the ASX, at the index level at least, with large cap, index heavy names continuing to find flows, though there was plenty of weakness across certain sectors, resources being an area that remained under pressure.
Wednesday saw the ASX200 close down 0.1% after rotating in another tight 0.4% range as the market remains in its “Middle East Conflict” holding pattern. The losers slightly beat the winners, with only two stocks moving by over 5%, illustrating the lacklustre nature of the day. At the sector level, weakness in the resources sector more than offset gains in tech, which we will examine later today
The ASX bounced between positive and negative territory today amid a sharp sell-off in materials after iron ore hit a 9-month low but ultimately closed toward its lows of the days narrow ~30pt trading range.
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
Verication email sent.
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
!
Invalid One Time Password
Please check you entered the correct info, please also note there is a 10minute time limit on the One Time Passcode
To reset your password, enter your email address
A link to create a new password will be sent to the email address you have registered to your account.
