A tough session to end a softer week for the market with 80% of the ASX 200 finishing lower. We penned a note on Thursday titled: What are MM’s favorite defensive stocks? Click here and looking at the weekly performances of ASX sectors it was a timely missive with Healthcare, Industrials, Utilities and Staples the relative performers for the period while Materials & IT lost over 5% a pop. On the market today it was the Material stocks that felt the brunt with BHP down -4.36% taking 33points off the index alone, a huge influence.
A solid session for the ASX finishing higher for a 5th straight session and again knocking on the door of new all-time highs. Most love was directed to the Industrial & property sectors while IT stocks led the losses heavily influenced by weakness in BNPL & a 20% decline in Megaport (MP1).
The local market had a strong rally early in the session, coming to within 8 points of the all-time high before 11AM. Strength in the financials sector early helped carry the index, however, selling in the heavyweight sector weighed on the index as the session went on. Commodity facing sectors took a backwards step on the back of a global growth outlook downgrade. Healthcare was the standout, though stock-specific factors carried the sector. Overall the index gave back 55pts intraday to close just marginally higher.
A solid session for local stocks today, albeit a very quiet one with the market rallying early before treading water late in the day. Minutes from the RBA’s April meeting showed a growing inclination to raise rates sooner than originally thought which underpinned higher bond yields - Healthcare & IT stocks came under pressure as a consequence while Energy & Materials remained firm.
The market traded in a reasonably tight range for much of the session and importantly held firmly above 7500. Four sectors managed gains of more than 1% with tech the big surprise as yields fell despite strong price index numbers earlier in the week. The commodity focussed sectors of materials and energy were also strong performers. Financials struggled but couldn’t hold back the broader index.
Most stocks rallied today pushing the index higher as we edge towards the four day Easter break. Materials & Energy did the heavy lifting more than offsetting weakness amongst the property stocks. While the traditional April rally has so far been elusive, March was up ~7% so understandable that stocks have consolidated that move, however, the index now looks well-positioned for an assault higher, we think.
A softer session for the ASX today with weakness fairly broad-based although far from aggressive in nature. It simply felt like a lack of interest and if the traffic is anything to go by many have already taken off for School holidays / Easter break. Inflation data in the US tonight which will be a key focus – March CPI expected to be 8.4% YoY up from 7.9% in Feb.
The market opened higher this morning however petered out into the afternoon as the resource stocks gave back early gains, particularly in Iron Ore & Lithium. The IT names again dominated the naughty corner as Australian 10 year bond yields topped 3% for the first time since July 2015, however the move was far from aggressive. As discussed in Marco Monday (click here) this morning, we think the respective elastic bands are being tested at their extremes, some reversion is now our preferred scenario.
Commodities helped support the local index into the weekend as the index recouped most of the losses see this week. Materials were strong coming on the back of further sanctions on Russia as well as commentary out of Japan as they look for alternative sources of coal and other bulk commodities. Tech remained under pressure with central banks continuing to push higher rates and balance sheet tightening, also weighing on Real Estate stocks.
The market opened lower this morning & tracked sideways in a lacklustre session with weakness across the IT stocks the only real standout, while there was an obvious move into the more defensive areas of Staples, Utilities & REITS. The fact todays -47pt drop was the biggest in 3 weeks highlights how subdued the market has become at the index level, with all the action happening under the hood.
A solid session for the ASX finishing higher for a 5th straight session and again knocking on the door of new all-time highs. Most love was directed to the Industrial & property sectors while IT stocks led the losses heavily influenced by weakness in BNPL & a 20% decline in Megaport (MP1).
The local market had a strong rally early in the session, coming to within 8 points of the all-time high before 11AM. Strength in the financials sector early helped carry the index, however, selling in the heavyweight sector weighed on the index as the session went on. Commodity facing sectors took a backwards step on the back of a global growth outlook downgrade. Healthcare was the standout, though stock-specific factors carried the sector. Overall the index gave back 55pts intraday to close just marginally higher.
A solid session for local stocks today, albeit a very quiet one with the market rallying early before treading water late in the day. Minutes from the RBA’s April meeting showed a growing inclination to raise rates sooner than originally thought which underpinned higher bond yields - Healthcare & IT stocks came under pressure as a consequence while Energy & Materials remained firm.
The market traded in a reasonably tight range for much of the session and importantly held firmly above 7500. Four sectors managed gains of more than 1% with tech the big surprise as yields fell despite strong price index numbers earlier in the week. The commodity focussed sectors of materials and energy were also strong performers. Financials struggled but couldn’t hold back the broader index.
Most stocks rallied today pushing the index higher as we edge towards the four day Easter break. Materials & Energy did the heavy lifting more than offsetting weakness amongst the property stocks. While the traditional April rally has so far been elusive, March was up ~7% so understandable that stocks have consolidated that move, however, the index now looks well-positioned for an assault higher, we think.
A softer session for the ASX today with weakness fairly broad-based although far from aggressive in nature. It simply felt like a lack of interest and if the traffic is anything to go by many have already taken off for School holidays / Easter break. Inflation data in the US tonight which will be a key focus – March CPI expected to be 8.4% YoY up from 7.9% in Feb.
The market opened higher this morning however petered out into the afternoon as the resource stocks gave back early gains, particularly in Iron Ore & Lithium. The IT names again dominated the naughty corner as Australian 10 year bond yields topped 3% for the first time since July 2015, however the move was far from aggressive. As discussed in Marco Monday (click here) this morning, we think the respective elastic bands are being tested at their extremes, some reversion is now our preferred scenario.
Commodities helped support the local index into the weekend as the index recouped most of the losses see this week. Materials were strong coming on the back of further sanctions on Russia as well as commentary out of Japan as they look for alternative sources of coal and other bulk commodities. Tech remained under pressure with central banks continuing to push higher rates and balance sheet tightening, also weighing on Real Estate stocks.
The market opened lower this morning & tracked sideways in a lacklustre session with weakness across the IT stocks the only real standout, while there was an obvious move into the more defensive areas of Staples, Utilities & REITS. The fact todays -47pt drop was the biggest in 3 weeks highlights how subdued the market has become at the index level, with all the action happening under the hood.
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