The ASX drifted lower throughout the day with no meaningful leads from overseas indices, and better-than-expected economic growth was ignored with some investors potentially guilty of considering September's negative seasonal reputation.
The ASX was down sharply early on, off ~50pts at the lows however a spirited fightback played out, pre, but more so post the RBA decision to keep rates on hold at 4.1% as widely expected, the final call for Dr Philip Lowe.
The ASX opened with a bang this morning hitting a high of 7340, up 62pts before giving back 1/3rd of the gains as the day progressed. Still, with no US trade tonight and a fairly quiet day volume-wise, the direction of least resistance continues to be up led by a resurgence in the Energy and Materials sectors.
Today marks the end of FY23 reporting, although there will be a few stragglers that come out late, normally with bad news! Interestingly enough, the only two sectors to finish higher during August were discretionary retail (+4.64%) and property (+0.99%), the two sectors that many fingered as having most risk ahead of results! Further still, the defensive/safe Utilities & Staples were the two weakest links, showing the importance of retaining an open mind, particularly in this market.
Bang! Weak building approvals and a softer-than-expected read on inflation had the bulls charging today, and an already positive lead from the US overnight on weaker jobs data was supercharged by our own soft economic reads at 11.30 a.m., which should see the RBA hold fire from here, making 4.1% the peak in interest rates!
The majority of companies have now reported and while we hate using the old cliché, its been better than feared, much like the broader economic outcomes that have played out over the past year which has prompted a more aggressive stance by central banks globally – the imminent recession is getting less airtime and markets are reflecting that. As we’ve written at nauseum over recent months, we’re neutral at the index level but that belies significant action that’s unfolding under the hood, a theme we expect to continue, creating a great environment for stock picking, as long as you pick the right stocks!
A solid session to kick off the new week despite a mixed bag on the reporting front as we transition down the market cap spectrum over the next week. So far, results have been better-than-expected with earnings beats outnumbering misses 5:3, however there is growing uncertainty around what comes next and that’s filtering into softer guidance in aggregate for FY24, prompting downgrades.
The worst of it was seen in early trade today with the ASX off ~100pts at the lows, but some buyers emerged throughout the session, particularly amongst the recently weak Staples while Healthcare stocks also attracted some attention from early lows, Ramsay Healthcare (RHC) for example rallied 3% from the depth of despair this morning! It felt like a tough week, and given only 2 sectors finished in the black, the selling was fairly broad-based, however, it was far from aggressive (ASX -0.5% for the week) and there were plenty of stocks that did well.
A solid session for the ASX today, although some late selling again took some of the sheen off the day. IT stocks continued on a volatile week where ~5% swings have become commonplace, while the results today ensured some big moves under the hood, unfortunately for Market Matters, we were on the wrong side of a couple today!
The ASX was down sharply early on, off ~50pts at the lows however a spirited fightback played out, pre, but more so post the RBA decision to keep rates on hold at 4.1% as widely expected, the final call for Dr Philip Lowe.
The ASX opened with a bang this morning hitting a high of 7340, up 62pts before giving back 1/3rd of the gains as the day progressed. Still, with no US trade tonight and a fairly quiet day volume-wise, the direction of least resistance continues to be up led by a resurgence in the Energy and Materials sectors.
Today marks the end of FY23 reporting, although there will be a few stragglers that come out late, normally with bad news! Interestingly enough, the only two sectors to finish higher during August were discretionary retail (+4.64%) and property (+0.99%), the two sectors that many fingered as having most risk ahead of results! Further still, the defensive/safe Utilities & Staples were the two weakest links, showing the importance of retaining an open mind, particularly in this market.
Bang! Weak building approvals and a softer-than-expected read on inflation had the bulls charging today, and an already positive lead from the US overnight on weaker jobs data was supercharged by our own soft economic reads at 11.30 a.m., which should see the RBA hold fire from here, making 4.1% the peak in interest rates!
The majority of companies have now reported and while we hate using the old cliché, its been better than feared, much like the broader economic outcomes that have played out over the past year which has prompted a more aggressive stance by central banks globally – the imminent recession is getting less airtime and markets are reflecting that. As we’ve written at nauseum over recent months, we’re neutral at the index level but that belies significant action that’s unfolding under the hood, a theme we expect to continue, creating a great environment for stock picking, as long as you pick the right stocks!
A solid session to kick off the new week despite a mixed bag on the reporting front as we transition down the market cap spectrum over the next week. So far, results have been better-than-expected with earnings beats outnumbering misses 5:3, however there is growing uncertainty around what comes next and that’s filtering into softer guidance in aggregate for FY24, prompting downgrades.
The worst of it was seen in early trade today with the ASX off ~100pts at the lows, but some buyers emerged throughout the session, particularly amongst the recently weak Staples while Healthcare stocks also attracted some attention from early lows, Ramsay Healthcare (RHC) for example rallied 3% from the depth of despair this morning! It felt like a tough week, and given only 2 sectors finished in the black, the selling was fairly broad-based, however, it was far from aggressive (ASX -0.5% for the week) and there were plenty of stocks that did well.
A solid session for the ASX today, although some late selling again took some of the sheen off the day. IT stocks continued on a volatile week where ~5% swings have become commonplace, while the results today ensured some big moves under the hood, unfortunately for Market Matters, we were on the wrong side of a couple today!
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