The ASX looked very weak this time yesterday after dropping 100pts from the morning high, however the old mantra of buy weakness, sell strength has clearly remained in play. It feels like this saying (for MM at least) is becoming repetitious however that’s often the case in markets, things repeat themselves, until they don’t!
In with a bang, out with a whimper today. Equities were well bid early with stimulus & QE back on the agenda in the US. From there though, the sellers had the upper hand – China’s banking regulator warned of asset bubbles and signalled it would look to reduce leverage in its system. That set off a chain of selling in the region seeing Asian markets slide from ~1% up to ~1% down. The local market faired a touch better than its regional peers, though still finishing the day ~1.5% below the intraday high.
A bullish session for the ASX to correspond with the roll out of the new MM website – hope it’s a good omen! Many of you have sent through positive comments, thank you, and a few have had some frustrating login issues which I apologies about. We will get there and we are confident that the MM experience will only grow from here as the depth of content expands over time. If you have further feedback, we’d love to hear it.
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.
In with a bang, out with a whimper today. Equities were well bid early with stimulus & QE back on the agenda in the US. From there though, the sellers had the upper hand – China’s banking regulator warned of asset bubbles and signalled it would look to reduce leverage in its system. That set off a chain of selling in the region seeing Asian markets slide from ~1% up to ~1% down. The local market faired a touch better than its regional peers, though still finishing the day ~1.5% below the intraday high.
A bullish session for the ASX to correspond with the roll out of the new MM website – hope it’s a good omen! Many of you have sent through positive comments, thank you, and a few have had some frustrating login issues which I apologies about. We will get there and we are confident that the MM experience will only grow from here as the depth of content expands over time. If you have further feedback, we’d love to hear it.
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.
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