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 slipped another -0.3% last week but in our opinion, it felt like a solid performance as equities shrugged off short-term bond yields continuing their unrelenting march to multi-month/year highs i.e. The Australian 3-year closed above 3.6% as they edged ever closer to fresh 20-year highs around 3.8% while the US 2-years did scale fresh 15 year highs above 4.9%. As we often say markets that don’t fall on “bad news” are strong:
The ASX200 slipped another -0.5% last week with a -4.3% drop by heavyweight BHP weighing on both the index and the Materials Sector, however, the market’s pullback has started to lose momentum as company earnings fail to deliver the disasters many had feared/expected. Reporting season remains the dominant factor on the stock level but it’s interesting that things aren’t panning out as would be expected on the sector level:
Friday’s tough day for equities took the ASX200 lower for a second consecutive week, almost 3% below its early February high. Reporting season has created some major volatility on the stock/sector level which is no surprise but its not common to see Commonwealth Bank (CBA) lead both the sector and index lower - Australia’s largest banks closed down -8.2% for the week with the average fall across the “Big Four” come Friday being -5.6%, remember MM often says “the market cannot go up with the banks”.
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 slipped another -0.3% last week but in our opinion, it felt like a solid performance as equities shrugged off short-term bond yields continuing their unrelenting march to multi-month/year highs i.e. The Australian 3-year closed above 3.6% as they edged ever closer to fresh 20-year highs around 3.8% while the US 2-years did scale fresh 15 year highs above 4.9%. As we often say markets that don’t fall on “bad news” are strong:
The ASX200 slipped another -0.5% last week with a -4.3% drop by heavyweight BHP weighing on both the index and the Materials Sector, however, the market’s pullback has started to lose momentum as company earnings fail to deliver the disasters many had feared/expected. Reporting season remains the dominant factor on the stock level but it’s interesting that things aren’t panning out as would be expected on the sector level:
Friday’s tough day for equities took the ASX200 lower for a second consecutive week, almost 3% below its early February high. Reporting season has created some major volatility on the stock/sector level which is no surprise but its not common to see Commonwealth Bank (CBA) lead both the sector and index lower - Australia’s largest banks closed down -8.2% for the week with the average fall across the “Big Four” come Friday being -5.6%, remember MM often says “the market cannot go up with the banks”.
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