The ASX200 eked out another small gain last week, finally closing up +0.26% as the sector rotation from value into growth continued unabated even as local 3-year bond yields rallied to their highest close in 10 weeks – we question if the likes of tech can continue to ignore the move in bonds for much longer, especially if it gathers momentum. However, as the EOFY approaches a firm $US and strong earnings from some major tech names have maintained the trend which began in late 2022, last week was a simple case of the “song remains the same” but gains, in particular, became far more stock specific:
The ASX200 eked out a small +0.5% gain last week in one of the quietest weeks we’ve seen since COVID shook risks assets to their very foundations, the local market rotated in an extremely tight 1% range with recession fears weighing on the resources while tech and healthcare stocks led the gains courtesy of stability returning to the bond markets as analysts start to call for central banks to pivot on rates. A classic playbook, when bond yields fall/stabilise growth stocks usually benefit often to the detriment of value names i.e. fund managers are positioning themselves for a recession:
The ASX200 fell -1.2% last week following a poor performance from the banks both at home and in the US, the ASX200 Financial Sector closed out the week down -3.4% while the Utilities and Real Estate Sectors were the only 2 market pockets to close in positive territory. The local banks suffered as the US regional Banks plunged another -20% before bouncing on Friday while local sentiment soured following Thursday’s disappointing result from National Australia Bank (NAB), better earnings from ANZ Bank (ANZ) and Macquarie Group (MQG) on Friday weren’t enough to repair the damage
The ASX200 slipped -0.3% over the shortened Anzac week where yet again the main action was to be found beneath the market’s hood, a bad 4-days for the iron ore miners dominated proceedings combined with further worries around regional banks and another failed takeover as TPG walked away from its $1.8bn bid for funerals business InvoCare (IVC) was enough to send the index slightly lower. On the bright side, we saw further M&A activity with Kirin bidding for Blackmores (BKL), a couple of positive surprises on the earnings front catching overconfident shorts plus a resurgence across many building & property nam
The ASX200 slipped -0.4% last week after testing the psychological 7400 level on Monday, it was the turn of the energy & mining stocks to weigh on the local index while the banks did their best to maintain the market’s upward trajectory e.g. ANZ & NAB both rallied over 1% while Woodside (WDS), BHP Group (BHP), and RIO Tinto (RIO) all fell by more than - 3%. On the stock level, it was a week that saw some standout reversion to a number of the earlier trends through 2023 with Whitehaven Coal (WHC) surging +7.4% whereas Domain Holdings (DHG) fell -7.1%.
The ASX200 closed up another +2% last week taking the index within 3.6% of its all-time high, nervousness might be at an extremely high level but local stocks are defying the disbelievers and threatening to break out on the upside. For the doubters, there’s always something to worry about just around the corner but as we keep pointing out when the bears are at their most vocal stocks rarely fall:
The ASX200 has closed up ~2% for the quarter even as we saw the RBA hike interest rates twice and the global banking sector teetering on the edge of a full-blown crisis. Equities continue to defy the numerous bears although it’s been far from one-way traffic so far in 2023 with the Energy & Financial Sectors falling while the interest rate sensitive names soared le by the Consumer Discretionary Index which soared +9.9%. An eclectic bunch of stocks caught our attention in both the winner’s and losers’ enclosure with M&A and reporting season exerting a huge influence on many stocks over the 3 months:
The ASX200 experienced a quiet week on the surface with the index closing down just 40 points / or -0.6% while under the hood there were some standout winners & losers but interestingly the much-discussed banking stocks were fairly quiet with the “Big 4” averaging a drop of just -1.5%. On a sector level, the banks and real estate names weighed on the index while on the stock front gold names again shone brightly while the ESG names (lithium) continued to struggle:
The ASX200 tumbled another 150 points last week taking this month’s decline to 3.6%, and a painful -7.6% from February’s high, just 6 weeks ago. The “Elephant In the Room” has certainly changed over the last fortnight as we’ve seen the US endure its 2nd & 3rd largest ever bank failures in history with another teeters on the edge, Europe has its own issues with Credit Swiss requiring a $US54bn lifeline to regain some degree of confidence in its futures - the financial system straining at the riskier edges.
The ASX200 plunged -166 points/2.28% on Friday resulting in a -1.9% decline for the week, not too bad considering the likes of BHP Group (BHP), RIO Tinto (RIO), and CSL Ltd (CSL) all traded ex-dividend but it certainly felt far worse at 4 pm yesterday afternoon. This week’s issue wasn’t the macroeconomic picture that’s plagued equities all year but another negative “Black Swan” shock from crypto land as silicon valley bank SVB Financial (SIVB US) struggles to remain in business – we’ve even heard suggestions of a US bailout from Walls Street legend Bill Ackman. Whatever the ultimate result it confirms our opinion that Bitcoin et al is not an investment-grade option until further notice.
The ASX200 eked out a small +0.5% gain last week in one of the quietest weeks we’ve seen since COVID shook risks assets to their very foundations, the local market rotated in an extremely tight 1% range with recession fears weighing on the resources while tech and healthcare stocks led the gains courtesy of stability returning to the bond markets as analysts start to call for central banks to pivot on rates. A classic playbook, when bond yields fall/stabilise growth stocks usually benefit often to the detriment of value names i.e. fund managers are positioning themselves for a recession:
The ASX200 fell -1.2% last week following a poor performance from the banks both at home and in the US, the ASX200 Financial Sector closed out the week down -3.4% while the Utilities and Real Estate Sectors were the only 2 market pockets to close in positive territory. The local banks suffered as the US regional Banks plunged another -20% before bouncing on Friday while local sentiment soured following Thursday’s disappointing result from National Australia Bank (NAB), better earnings from ANZ Bank (ANZ) and Macquarie Group (MQG) on Friday weren’t enough to repair the damage
The ASX200 slipped -0.3% over the shortened Anzac week where yet again the main action was to be found beneath the market’s hood, a bad 4-days for the iron ore miners dominated proceedings combined with further worries around regional banks and another failed takeover as TPG walked away from its $1.8bn bid for funerals business InvoCare (IVC) was enough to send the index slightly lower. On the bright side, we saw further M&A activity with Kirin bidding for Blackmores (BKL), a couple of positive surprises on the earnings front catching overconfident shorts plus a resurgence across many building & property nam
The ASX200 slipped -0.4% last week after testing the psychological 7400 level on Monday, it was the turn of the energy & mining stocks to weigh on the local index while the banks did their best to maintain the market’s upward trajectory e.g. ANZ & NAB both rallied over 1% while Woodside (WDS), BHP Group (BHP), and RIO Tinto (RIO) all fell by more than - 3%. On the stock level, it was a week that saw some standout reversion to a number of the earlier trends through 2023 with Whitehaven Coal (WHC) surging +7.4% whereas Domain Holdings (DHG) fell -7.1%.
The ASX200 closed up another +2% last week taking the index within 3.6% of its all-time high, nervousness might be at an extremely high level but local stocks are defying the disbelievers and threatening to break out on the upside. For the doubters, there’s always something to worry about just around the corner but as we keep pointing out when the bears are at their most vocal stocks rarely fall:
The ASX200 has closed up ~2% for the quarter even as we saw the RBA hike interest rates twice and the global banking sector teetering on the edge of a full-blown crisis. Equities continue to defy the numerous bears although it’s been far from one-way traffic so far in 2023 with the Energy & Financial Sectors falling while the interest rate sensitive names soared le by the Consumer Discretionary Index which soared +9.9%. An eclectic bunch of stocks caught our attention in both the winner’s and losers’ enclosure with M&A and reporting season exerting a huge influence on many stocks over the 3 months:
The ASX200 experienced a quiet week on the surface with the index closing down just 40 points / or -0.6% while under the hood there were some standout winners & losers but interestingly the much-discussed banking stocks were fairly quiet with the “Big 4” averaging a drop of just -1.5%. On a sector level, the banks and real estate names weighed on the index while on the stock front gold names again shone brightly while the ESG names (lithium) continued to struggle:
The ASX200 tumbled another 150 points last week taking this month’s decline to 3.6%, and a painful -7.6% from February’s high, just 6 weeks ago. The “Elephant In the Room” has certainly changed over the last fortnight as we’ve seen the US endure its 2nd & 3rd largest ever bank failures in history with another teeters on the edge, Europe has its own issues with Credit Swiss requiring a $US54bn lifeline to regain some degree of confidence in its futures - the financial system straining at the riskier edges.
The ASX200 plunged -166 points/2.28% on Friday resulting in a -1.9% decline for the week, not too bad considering the likes of BHP Group (BHP), RIO Tinto (RIO), and CSL Ltd (CSL) all traded ex-dividend but it certainly felt far worse at 4 pm yesterday afternoon. This week’s issue wasn’t the macroeconomic picture that’s plagued equities all year but another negative “Black Swan” shock from crypto land as silicon valley bank SVB Financial (SIVB US) struggles to remain in business – we’ve even heard suggestions of a US bailout from Walls Street legend Bill Ackman. Whatever the ultimate result it confirms our opinion that Bitcoin et al is not an investment-grade option until further notice.
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
Verication email sent.
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
!
Invalid One Time Password
Please check you entered the correct info, please also note there is a 10minute time limit on the One Time Passcode
To reset your password, enter your email address
A link to create a new password will be sent to the email address you have registered to your account.
