A soft return for the local market today following yesterday’s holiday. Iron ore names were the biggest weight on the index as the commodity price took a step back from its soaring heights with traders concerned with tight steel margins
A quiet session for the ASX today with the bulk of the market taking the day off to make a 4 day weekend with Australia Day tomorrow – makes sense, although there were a few in office that got ‘stuck on the desk’ like I did. The retailers and IT stocks were the best on ground today while another 4% gain in Fortescue Metals (FMG) helped to support the material sector – we touched on FMG in the AM note today, expecting a big earnings / dividend number in February.
Equities were on the run again today as investors look to the Biden inauguration tonight, heralding the expected reduced volatility that comes with a post-Trump world. The local market closed at a new post-March high, on the brink of breaking out. Tech was the standout – led by Afterpay closing at a new record on the back of an initiation we discuss below. Despite the strength though, the big 4 banks took a breather with all closing lower on the session resulting in the financials being the worst of the sectors.
Miners continue to be in focus with a raft of quarterly production reports coming through – the gold names kick off tomorrow but BHP was centre stage today. UBS were running the numbers on real estate today, and while are reasonably keen on the sector as low interest rates and a vaccine recovery take place, they so see the retail reopening trade as largely complete and downgraded VCX & SCG.
The ASX 200 finished up 27pts / 0.41% to close at 6770. Dow Futures are trading off -17pts / -0.06%.
Stocks bounced back today in solid fashion with the retailers the shining light, our note this morning clearly a topical one however it was some of the other names in the space that caught my attention. Adore Beauty (ABY) has been a struggle since listing last year however a good session today saw it up 6.55% to close at $5.86, while Dominoes (DMP) enjoyed a broker upgrade and rallied +7.97% to close at $89.59. All in all, a solid session with the buying broad based, only 10% of the ASX 200 finished the session down and it was the recently hot stocks that suffered at the hands of some profit taking. Bingo (BIN) was a standout after announcing takeover interest – we used to hold this and like the stock – frustratingly we don’t hold it currently - while Tyro (TYR) put out a good rebuttal to the short thesis published last week.
The five-day winning streak for the ASX ended today with the market trickling lower from the outset, however there was a lot of corporate news out to digest – most if it positive. After a very bullish run for stocks, some consolidationa around current levels would not surpirse with the thematic of sector / stocks rotation being front and centre.
At the sector level today, Telco’s topped the board thanks to a 3% rally in Telstra (TLS) – more on that below while money came back into the tech sector today after a few tough sessions.
Asian markets were mixed today while US Futures were down during our time zone.
By the close, the ASX 200 was down -31pts / -0.49% to close at 6418. Dow Futures are trading down -210pts/-0.72%
The ASX was hit hard today losing nearly 100pts, although it didn’t feel ‘that bad’ in terms of individual stock moves, it was more akin to a slow cash crash than anything aggressive or spectacular. Yesterday, the ASX defied weakness in US Futures which traded lower throughout our time zone picking the overnight weakness well, today the opposite played out with strength in US Futures not being embraced by local traders.
Asian equities powered ahead helped by US S&P500 futures trading at yet another fresh all-time high during our time zone - what’s not to like in equities land? If investor’s simply don’t listen to the news and watch the money flow through stocks it would be hard not to be fully invested, unfortunately it’s hard to avoid the press or listen / watch the news without hearing how dire things are on both the economic and humanitarian front. I know it sounds back to front but history tells us that until things finally look & feel good, probably with a vaccine approaching production, the stock market will probably continue to “climb its increasing wall of worry”.
A strong open this morning with the market hitting an early high of 6166 only to see sellers hit the boards and push the index lower into the close. Gainers to losers were split pretty much down the middle today, however again there were some very strong performances from individual stocks that reported numbers headlined by Suncorp (SUN) – more on that below. Looking at the leader board today, the likes of Flight Centre (FLT), Webjet (WEB) and Star Entertainment (SGR) all rallied well highlighting the ‘re-opening trade’ is gaining momentum.
A quiet session for the ASX today with the bulk of the market taking the day off to make a 4 day weekend with Australia Day tomorrow – makes sense, although there were a few in office that got ‘stuck on the desk’ like I did. The retailers and IT stocks were the best on ground today while another 4% gain in Fortescue Metals (FMG) helped to support the material sector – we touched on FMG in the AM note today, expecting a big earnings / dividend number in February.
Equities were on the run again today as investors look to the Biden inauguration tonight, heralding the expected reduced volatility that comes with a post-Trump world. The local market closed at a new post-March high, on the brink of breaking out. Tech was the standout – led by Afterpay closing at a new record on the back of an initiation we discuss below. Despite the strength though, the big 4 banks took a breather with all closing lower on the session resulting in the financials being the worst of the sectors.
Miners continue to be in focus with a raft of quarterly production reports coming through – the gold names kick off tomorrow but BHP was centre stage today. UBS were running the numbers on real estate today, and while are reasonably keen on the sector as low interest rates and a vaccine recovery take place, they so see the retail reopening trade as largely complete and downgraded VCX & SCG.
The ASX 200 finished up 27pts / 0.41% to close at 6770. Dow Futures are trading off -17pts / -0.06%.
Stocks bounced back today in solid fashion with the retailers the shining light, our note this morning clearly a topical one however it was some of the other names in the space that caught my attention. Adore Beauty (ABY) has been a struggle since listing last year however a good session today saw it up 6.55% to close at $5.86, while Dominoes (DMP) enjoyed a broker upgrade and rallied +7.97% to close at $89.59. All in all, a solid session with the buying broad based, only 10% of the ASX 200 finished the session down and it was the recently hot stocks that suffered at the hands of some profit taking. Bingo (BIN) was a standout after announcing takeover interest – we used to hold this and like the stock – frustratingly we don’t hold it currently - while Tyro (TYR) put out a good rebuttal to the short thesis published last week.
The five-day winning streak for the ASX ended today with the market trickling lower from the outset, however there was a lot of corporate news out to digest – most if it positive. After a very bullish run for stocks, some consolidationa around current levels would not surpirse with the thematic of sector / stocks rotation being front and centre.
At the sector level today, Telco’s topped the board thanks to a 3% rally in Telstra (TLS) – more on that below while money came back into the tech sector today after a few tough sessions.
Asian markets were mixed today while US Futures were down during our time zone.
By the close, the ASX 200 was down -31pts / -0.49% to close at 6418. Dow Futures are trading down -210pts/-0.72%
The ASX was hit hard today losing nearly 100pts, although it didn’t feel ‘that bad’ in terms of individual stock moves, it was more akin to a slow cash crash than anything aggressive or spectacular. Yesterday, the ASX defied weakness in US Futures which traded lower throughout our time zone picking the overnight weakness well, today the opposite played out with strength in US Futures not being embraced by local traders.
Asian equities powered ahead helped by US S&P500 futures trading at yet another fresh all-time high during our time zone - what’s not to like in equities land? If investor’s simply don’t listen to the news and watch the money flow through stocks it would be hard not to be fully invested, unfortunately it’s hard to avoid the press or listen / watch the news without hearing how dire things are on both the economic and humanitarian front. I know it sounds back to front but history tells us that until things finally look & feel good, probably with a vaccine approaching production, the stock market will probably continue to “climb its increasing wall of worry”.
A strong open this morning with the market hitting an early high of 6166 only to see sellers hit the boards and push the index lower into the close. Gainers to losers were split pretty much down the middle today, however again there were some very strong performances from individual stocks that reported numbers headlined by Suncorp (SUN) – more on that below. Looking at the leader board today, the likes of Flight Centre (FLT), Webjet (WEB) and Star Entertainment (SGR) all rallied well highlighting the ‘re-opening trade’ is gaining momentum.
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