A positive start to the trading week with IT, Real-Estate & Materials sectors offering most support to the broader market. Reporting was again dominate with one trend becoming more obvious the more companies report, that being very cautious / non-committal guidance. While it seems most have started off FY22 with good momentum, COVID resurgence globally plus of course lockdowns locally are having a big impact on company’s ability/desire to forecast.
The ASX came out of the blocks on the front foot this morning after a tough week, however the best of it was seen in the first hour before the market sold off for the rest of the day. The defensive sectors did best while continued weakness in commodity prices weighed on the Material stocks, although we are seeing signs of stabilization there. For the week, the ASX 200 fell -2.2% with Materials -9.6% & Energy -7.7% the two biggest drags while the Staples sector added ~3% to top the leader board.
The ASX fell for its fourth-straight day weighed down by losses in the mining and financial sectors, the former hurt by further declines in BHP (-6.35%) while Fortescue (FMG) & Rio Tinto (RIO) were also down a similar amount thanks to a 6% decline in Iron Ore Futures during Asian trade today. FMG now a whisker from our $20 target while RIO at $107.17 this afternoon is below the $108 we flagged this morning.
A more muted session at the index level today with the ASX weak on open before recovering to trade around par for most of the session. Reporting dominated the news flow, some big hits but more incremental misses overall however it was BHP falling ~7% that attracted most attention with the move taking a massive 33 index points from the ASX 200…I haven’t seen that in a long time. A lot to play out here however there is now an arbitrage...
Stocks posted a second day of declines led lower by financials as CBA & IAG traded ex-dividend while weakness in metals markets overnight flowed to weakness amongst our miners today, BHP down ~1.42% ahead of its FY21 results due out shortly. The ~1% sell-off was the biggest in 2 months which shows the lack of volatility we’ve become accustomed to of late. Still, most focus was on a busy day of results with bigger declines booked by the ‘misses’ than rallies by the ‘beats’.
Stocks fell today slipping back from record highs weighed by the Energy, Financial & Material sectors, while the defensive supermarkets did best. The Covid situation has clearly deteriorated locally however it’s also the case internationally with case counts globally ratcheting up. We also had weaker than expected data from China today with industrial production & retail sales missing the mark while local earnings saw more hits than misses, although...
A positive session to end a positive week for the ASX with the first full week of reporting now under our belt. Overall, it’s been generally good, particularly amongst the financials (banks & insurers) which has propelled the ASX to new all time highs, outpacing the gains across the region.
The market was once again strongest early with the daily high set soon after open before sellers faded the move. While the market is grinding higher, it is losing some momentum and while this is a very micro interpretation, a lower intra-day high today is a sign we could drift lower in the short term, easy to comprehend given our short term view of the banks has now become a more neutral one and we’re seeing selling creep into the high valuation growth areas of the market.
This morning’s note was titled Fade the ‘pop’ but BUY the dip and on que the market had a couple of ‘looks’ above 7600 this morning only to close below it, around ~30 points from the intra session high of 7615 that was set at 11.23am. A great FY21 result from CBA saw the shares trade to a new all-time high this morning at $109.03 and that along with some decent buying in the large cap resources had the market on the fly early, however by the close, things were a little more subdued.
A choppy but ultimately positive session for the ASX today with the IT stocks offering most support while the Industrials lagged. The key Materials & Financials sectors were more muted today ahead of some key results tomorrow, including Commonwealth Bank (CBA).
The ASX came out of the blocks on the front foot this morning after a tough week, however the best of it was seen in the first hour before the market sold off for the rest of the day. The defensive sectors did best while continued weakness in commodity prices weighed on the Material stocks, although we are seeing signs of stabilization there. For the week, the ASX 200 fell -2.2% with Materials -9.6% & Energy -7.7% the two biggest drags while the Staples sector added ~3% to top the leader board.
The ASX fell for its fourth-straight day weighed down by losses in the mining and financial sectors, the former hurt by further declines in BHP (-6.35%) while Fortescue (FMG) & Rio Tinto (RIO) were also down a similar amount thanks to a 6% decline in Iron Ore Futures during Asian trade today. FMG now a whisker from our $20 target while RIO at $107.17 this afternoon is below the $108 we flagged this morning.
A more muted session at the index level today with the ASX weak on open before recovering to trade around par for most of the session. Reporting dominated the news flow, some big hits but more incremental misses overall however it was BHP falling ~7% that attracted most attention with the move taking a massive 33 index points from the ASX 200…I haven’t seen that in a long time. A lot to play out here however there is now an arbitrage...
Stocks posted a second day of declines led lower by financials as CBA & IAG traded ex-dividend while weakness in metals markets overnight flowed to weakness amongst our miners today, BHP down ~1.42% ahead of its FY21 results due out shortly. The ~1% sell-off was the biggest in 2 months which shows the lack of volatility we’ve become accustomed to of late. Still, most focus was on a busy day of results with bigger declines booked by the ‘misses’ than rallies by the ‘beats’.
Stocks fell today slipping back from record highs weighed by the Energy, Financial & Material sectors, while the defensive supermarkets did best. The Covid situation has clearly deteriorated locally however it’s also the case internationally with case counts globally ratcheting up. We also had weaker than expected data from China today with industrial production & retail sales missing the mark while local earnings saw more hits than misses, although...
A positive session to end a positive week for the ASX with the first full week of reporting now under our belt. Overall, it’s been generally good, particularly amongst the financials (banks & insurers) which has propelled the ASX to new all time highs, outpacing the gains across the region.
The market was once again strongest early with the daily high set soon after open before sellers faded the move. While the market is grinding higher, it is losing some momentum and while this is a very micro interpretation, a lower intra-day high today is a sign we could drift lower in the short term, easy to comprehend given our short term view of the banks has now become a more neutral one and we’re seeing selling creep into the high valuation growth areas of the market.
This morning’s note was titled Fade the ‘pop’ but BUY the dip and on que the market had a couple of ‘looks’ above 7600 this morning only to close below it, around ~30 points from the intra session high of 7615 that was set at 11.23am. A great FY21 result from CBA saw the shares trade to a new all-time high this morning at $109.03 and that along with some decent buying in the large cap resources had the market on the fly early, however by the close, things were a little more subdued.
A choppy but ultimately positive session for the ASX today with the IT stocks offering most support while the Industrials lagged. The key Materials & Financials sectors were more muted today ahead of some key results tomorrow, including Commonwealth Bank (CBA).
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