A choppy session for the ASX although it traded in a tight ~30pt trading range overall with Lithium stocks giving back some recent gains on two pieces of negative news, while Gold equities enjoyed the breakout in bullion prices.
The ASX hit record highs early on before some profit-taking kicked in mid-morning. Selling was pretty benign with the index falling around -0.4% from highs to the close driven by softer Business conditions data which showed a larger than expected fall in inventories in Q4, likely to weigh on GDP growth. Small caps continued their push higher though, the Small Ords closing at a new 52-week high today.
A strong session to end a strong week at new record highs, the 6th weekly gain from the last 7 with investors happy to buy stocks after a good reporting period where beats outnumbered misses, and earnings in most parts held up well. At an aggregate level, earnings estimates have been revised lower, however, the driver is resources on weaker commodity prices, a backward-looking indicator in MM’s view, and the broader market has been resilient.
A strong session eventually played out today, with the index +70pts from the morning (11 am) lows, trading to all-time highs in the process (7703.8), and closing the month just 5pts below the milestone (7698), a good outcome and as we’ve been suggesting, it seems the market is priming itself for an ultimate breakout, we just need the support of the influential materials sector!
Early gains were given up swiftly today, the high set just 10mins into the session up ~20pts, but trading lower by 10.30am before chopping around breakeven for the day from there. Some big hitters going ex-dividend today – Telstra (TLS), Fortescue (FMG) & Woolworths (WOW) – weighed on the cash market outcome. The monthly CPI print landed late this morning, coming in at 3.4%, below the 3.6% expected, however, this failed to have a meaningful impact on equity markets.
A good turnaround from the market today recovering ~50pts from the morning lows to close marginally higher, it feels like it wants to go up with BHP and co the key. If the resources can bounce here we’d be surprised if the market didn’t breakout and look to test ~8000 in short order.
A lot of action under the hood today with a mixture of M&A and earnings results. Alcoa lopped a bid for Alumina (AWC) and Aussie Broadband (ABB) had a tilt at Superloop (SLC, while Nanosonics (NAB) was hit on a weak outlook while Kogan (KGN) did the opposite as they continued their post-COVID recovery.
Stocks ended a busy week on the up with reporting season dominating the flow. Overall, results have been good, hard to fault them on aggregate hence the market has remained incredibly resilient around all-time highs, buoyed by overseas indices from the US, Europe & Japan all making new highs. We’ve obviously got a heavier exposure to China that is still struggling economically, however, worth noting the Shanghai Composite is on track to book its 2nd consecutive week of gains and is now up 13% from its mid-month low.
Another quiet day at the index level, but a lot happening under the hood as we hit the peak of local reporting season – always a good milestone, and we’re now on the home stretch. Super Retail was one of the first discretionary retailers to signal a slowdown in January and was sold off as a consequence, while Qantas had a volatile day announcing plans to spend big on new plans.
A weaker session thanks to a few large index weights disappointing, particularly amongst the resources, however worth noting some strength came through from the intra-day lows as Chinese equities bounced. It may sound like we’re clutching at straws, but there is growing evidence that China will get a handle on its economic woes, and we often see stock prices pre-empt such turning points.
The ASX hit record highs early on before some profit-taking kicked in mid-morning. Selling was pretty benign with the index falling around -0.4% from highs to the close driven by softer Business conditions data which showed a larger than expected fall in inventories in Q4, likely to weigh on GDP growth. Small caps continued their push higher though, the Small Ords closing at a new 52-week high today.
A strong session to end a strong week at new record highs, the 6th weekly gain from the last 7 with investors happy to buy stocks after a good reporting period where beats outnumbered misses, and earnings in most parts held up well. At an aggregate level, earnings estimates have been revised lower, however, the driver is resources on weaker commodity prices, a backward-looking indicator in MM’s view, and the broader market has been resilient.
A strong session eventually played out today, with the index +70pts from the morning (11 am) lows, trading to all-time highs in the process (7703.8), and closing the month just 5pts below the milestone (7698), a good outcome and as we’ve been suggesting, it seems the market is priming itself for an ultimate breakout, we just need the support of the influential materials sector!
Early gains were given up swiftly today, the high set just 10mins into the session up ~20pts, but trading lower by 10.30am before chopping around breakeven for the day from there. Some big hitters going ex-dividend today – Telstra (TLS), Fortescue (FMG) & Woolworths (WOW) – weighed on the cash market outcome. The monthly CPI print landed late this morning, coming in at 3.4%, below the 3.6% expected, however, this failed to have a meaningful impact on equity markets.
A good turnaround from the market today recovering ~50pts from the morning lows to close marginally higher, it feels like it wants to go up with BHP and co the key. If the resources can bounce here we’d be surprised if the market didn’t breakout and look to test ~8000 in short order.
A lot of action under the hood today with a mixture of M&A and earnings results. Alcoa lopped a bid for Alumina (AWC) and Aussie Broadband (ABB) had a tilt at Superloop (SLC, while Nanosonics (NAB) was hit on a weak outlook while Kogan (KGN) did the opposite as they continued their post-COVID recovery.
Stocks ended a busy week on the up with reporting season dominating the flow. Overall, results have been good, hard to fault them on aggregate hence the market has remained incredibly resilient around all-time highs, buoyed by overseas indices from the US, Europe & Japan all making new highs. We’ve obviously got a heavier exposure to China that is still struggling economically, however, worth noting the Shanghai Composite is on track to book its 2nd consecutive week of gains and is now up 13% from its mid-month low.
Another quiet day at the index level, but a lot happening under the hood as we hit the peak of local reporting season – always a good milestone, and we’re now on the home stretch. Super Retail was one of the first discretionary retailers to signal a slowdown in January and was sold off as a consequence, while Qantas had a volatile day announcing plans to spend big on new plans.
A weaker session thanks to a few large index weights disappointing, particularly amongst the resources, however worth noting some strength came through from the intra-day lows as Chinese equities bounced. It may sound like we’re clutching at straws, but there is growing evidence that China will get a handle on its economic woes, and we often see stock prices pre-empt such turning points.
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