A poor day from a relative standpoint for the MM portfolio’s today, the Growth Portfolio hurt by a weak update by A2 Milk (A2M), although it was somewhat offset by a 7% rally by Ramsay Healthcare (RHC). For those thinking about how a move like this will impact on a portfolio which is always the important thing, the growth portfolio underperformed an 0.80% rise in the mkt today by around 0.40% - not good, but days like this happen.
More than 60% of the market finished lower today in a session that saw the recently hot resources cool off, BHP the biggest weight from an index perspective falling by 3.1% and taking 14pts from the ASX 200, however the most obvious sea of red came from the high value IT names, Seek (SEK) down -7.8%, Nanosonic (NAN) -8% and REA Group (REA) off by -4.42% to name a few, although the biggest landmine was Appen (APX) which fell 12% after downgrading guidance – Harry covers off this one below. Interestingly enough, while the BNPL stocks were down on the session, Zip Co (Z1P) fell just -0.84% which is a show of underlying strength in a weak market – both Afterpay (APT) and Z1P Co (Z1P) report tomorrow.
High value growth took it on the chin today, mirroring the performance we saw in US markets overnight where the Dow finished marginally higher while the Nasdaq fell 2.63%. The composition of the ASX being dominated by Banks and Resources was the key today and highlights why at MM we think Australia is in a very good position to outperform from here.
A fairly lackluster way to kick off the week from an index perspective, however again, there was a fair amount of action under the hood. As is customary at MM we like to address the uncomfortable things first and today it was Costa Group (GCG) which rallied +12.97% on a good Full Year update. We sold CGC to fund the purchase of A2 Milk (A2M) last week which has also rallied, but not by as much. More on CGC’s result below.
Just as the subject line suggests today, not a lot happening at the top line but a hell of a lot going on underneath the hood. We had landmine today in NRW Holdings (NWH) which fell 17%, I cover that below plus a bunch of other names that reported earnings.
Weakness across some of the more defensive areas of the market today as bond yields continue to tick higher, while the reflationary trade (materials, energy, financials) remained firm.
The ASX kicked the week off with a bang as 137 stocks from the 200 advanced, some in spectacular fashion with NearMap (NEA) +19% tearing the face off J Capital who put out a short report last week while Zip Co (Z1P) held in the MM Growth Portfolio and the soon to be released Emerging Companies Portfolio added another 17% to close at $12.66, a phenomenal run and the momentum clearly remains strong, while Bendigo Bank (BEN) is also worth a mention adding 11% on a good set of results, or at least, a lot better than downbeat expectations.
A weak session today with stocks lower for a third session in the past four, travel-related shares were hit by a decision to lock down Melbourne (Harry had to get a quick flight home this afternoon) as the outbreak of the U.K. strain of the coronavirus increases – Qantas (QAN) fell -4.81%.
A weaker session for the ASX today and this feeds into our view that the market is due a pause, a rest after a good run however that’s a very micro-outlook and one that we won’t put too much weight behind. Reporting again the key with some hits (TLS, NCM), misses (AMP, DOW) & meets (AGL, ASX, GUD, MFG, TCL).
More than 60% of the market finished lower today in a session that saw the recently hot resources cool off, BHP the biggest weight from an index perspective falling by 3.1% and taking 14pts from the ASX 200, however the most obvious sea of red came from the high value IT names, Seek (SEK) down -7.8%, Nanosonic (NAN) -8% and REA Group (REA) off by -4.42% to name a few, although the biggest landmine was Appen (APX) which fell 12% after downgrading guidance – Harry covers off this one below. Interestingly enough, while the BNPL stocks were down on the session, Zip Co (Z1P) fell just -0.84% which is a show of underlying strength in a weak market – both Afterpay (APT) and Z1P Co (Z1P) report tomorrow.
High value growth took it on the chin today, mirroring the performance we saw in US markets overnight where the Dow finished marginally higher while the Nasdaq fell 2.63%. The composition of the ASX being dominated by Banks and Resources was the key today and highlights why at MM we think Australia is in a very good position to outperform from here.
A fairly lackluster way to kick off the week from an index perspective, however again, there was a fair amount of action under the hood. As is customary at MM we like to address the uncomfortable things first and today it was Costa Group (GCG) which rallied +12.97% on a good Full Year update. We sold CGC to fund the purchase of A2 Milk (A2M) last week which has also rallied, but not by as much. More on CGC’s result below.
Just as the subject line suggests today, not a lot happening at the top line but a hell of a lot going on underneath the hood. We had landmine today in NRW Holdings (NWH) which fell 17%, I cover that below plus a bunch of other names that reported earnings.
Weakness across some of the more defensive areas of the market today as bond yields continue to tick higher, while the reflationary trade (materials, energy, financials) remained firm.
The ASX kicked the week off with a bang as 137 stocks from the 200 advanced, some in spectacular fashion with NearMap (NEA) +19% tearing the face off J Capital who put out a short report last week while Zip Co (Z1P) held in the MM Growth Portfolio and the soon to be released Emerging Companies Portfolio added another 17% to close at $12.66, a phenomenal run and the momentum clearly remains strong, while Bendigo Bank (BEN) is also worth a mention adding 11% on a good set of results, or at least, a lot better than downbeat expectations.
A weak session today with stocks lower for a third session in the past four, travel-related shares were hit by a decision to lock down Melbourne (Harry had to get a quick flight home this afternoon) as the outbreak of the U.K. strain of the coronavirus increases – Qantas (QAN) fell -4.81%.
A weaker session for the ASX today and this feeds into our view that the market is due a pause, a rest after a good run however that’s a very micro-outlook and one that we won’t put too much weight behind. Reporting again the key with some hits (TLS, NCM), misses (AMP, DOW) & meets (AGL, ASX, GUD, MFG, TCL).
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