The ASX200 experienced a very choppy week as is common through reporting season with 8 stocks in the ASX 200finishing the week up by more than 10% while 7 companies disappointed investors by similarly registering double digit losses. It felt like a volatile week due to the significant swings on the stock level but the index itself only closed down just 10-points following Fridays solid session as we saw a very impressive period for the resources companies offset by weakness in the consumer staples & discretionary, communication and financial stocks – we remain in a market that feels comfortable to aggressively rotate between stocks & sectors but it has no interest increasing or decreasing its overall exposure to equities.
The ASX200 felt tired for much of last week but it still managed to rally & close at fresh 10-week highs courtesy of some solid buying across the resources stocks e.g. Whitehaven Coal (WHC) +11.2%, BHP Group (BHP) +7%, South32 (S32) +3.5% and IGO Ltd (IGO) +2.7%. Conversely 2 sectors which weigh on the index and general sentiment dragged the chain
The ASX200 struggled last week considering the theoretically strong tailwind from a weak US CPI print and no major blow-ups from the local reporting season, the index did manage to scale fresh 9-week highs but by Fridays close it had only managed to close up +0.2%. The Resources Sector helped keep the index in positive territory, significantly assisted by BHP’s bid for OZ Minerals (OZL), but what probably caught most investors off-guard was a more than 2% pullback by the tech & healthcare sectors even after the deceleration by the main US inflation indicator.
The ASX200 rallied another +1% last week but the upside momentum is slowly waning although we still enjoyed more than 80% of sectors closing in positive territory, the Tech Sector led the line rallying +3.25%. The month to month stock & sector rotation continues to dominate proceedings under the hood e.g. the Energy Sector has been the standout of 2022 yet now it finds itself almost friendless while the hammered growth names are rallying akin a popping champagne cork, last week illustrated this perfectly:
The ASX200 rallied over 150-points last week taking the local markets gain to more than +5% in just 2-weeks, investors switched in earnest from defensive stocks & sectors just in time for MM to trim a few positions as indices reached our initial target for July. Interestingly it wasn’t the tech stocks which benefited on falling yields as the market continues look beyond the obvious, or perhaps simply 6-months in advance i.e. resources benefitted on the premise that central banks would be easing off on the rate hikes to avoid a recession.
The ASX200 enjoyed a strong week which saw the index rally +2.8% making fresh 5-week highs in the process, the Tech and Financials led the charge while only the defensive facing Healthcare and Consumer Staples Sector slipped slightly lower i.e. “risk on” has kicked back into vogue with a vengeance. However as we alluded to on Friday MM still labels the current advance as a likely “short squeeze” as opposed to fund managers calling a meaningful market bottom...
The ASX200 experienced another choppy week which threatened to break out on both the up and downside, but after 2-weeks the broad market remains basically unchanged for July. However under the hood the market's throwing up some interesting sector rotation, when we consider the extremely hawkish economic data we’ve received from a different number of countries, the outperformance by the likes of tech and healthcare suggests investors are tweaking their portfolios towards “peak inflation” occurring around now, and a possible recession in 2023, the following moves so far this month are certainly pointing this way:
The ASX200 experienced a choppy week which threatened to unravel on Wednesday only to come good on the home stretch with the local index finally closing up over +2% on broad based buying which saw over 80% of the main board close higher come Friday afternoon. However the real action was in the Resources Sector which ultimately closed mixed, overall this feels like a good result considering the carnage which was witnessed on Wednesday:
The ASX200 got hit around -0.4% in the match on Friday taking the index down 0.6% for a week which promised so much early on, the market was over 200-points higher on Tuesday afternoon! Weakness through the local market was most prevalent in sectors traditionally sensitive to an economic downturn courtesy off escalating recession fears e.g. Real Estate & Retail, while IT stocks failed to find encouragement from a pullback in bond yields. Through the week much of the day to day volatility was delivered by the miners with heavyweight BHP Group (BHP) trading in a greater than 7% range. Downgrades have been flowing through the Resources Sector with some prominent names getting whacked – MM took advantage of the volatility to buy back into OZ Minerals (OZL) as it hit fresh 18-month lows.
Last week saw the ASX200 stabilise and following a strong session on Friday even manage to close up +1.6% over the 5-days, an impressive effort considering the Resources Sector tumbled over -4.5% e.g. over the week we saw OZ Minerals (OZL) -5%, BHP Group (BHP) -5.9% and Santos (STO) -7.3%. MM have been talking about the potential for tech and growth stocks to bounce strongly for a while and Friday finally saw such an aggressive “risk on” move unfold as bond yields edge lower on recession fears although at MM we feel the tail end of tax loss selling probably helped release the cork from this particular bottle. Wherever we looked underperforming high beta stocks rallied strongly:
The ASX200 felt tired for much of last week but it still managed to rally & close at fresh 10-week highs courtesy of some solid buying across the resources stocks e.g. Whitehaven Coal (WHC) +11.2%, BHP Group (BHP) +7%, South32 (S32) +3.5% and IGO Ltd (IGO) +2.7%. Conversely 2 sectors which weigh on the index and general sentiment dragged the chain
The ASX200 struggled last week considering the theoretically strong tailwind from a weak US CPI print and no major blow-ups from the local reporting season, the index did manage to scale fresh 9-week highs but by Fridays close it had only managed to close up +0.2%. The Resources Sector helped keep the index in positive territory, significantly assisted by BHP’s bid for OZ Minerals (OZL), but what probably caught most investors off-guard was a more than 2% pullback by the tech & healthcare sectors even after the deceleration by the main US inflation indicator.
The ASX200 rallied another +1% last week but the upside momentum is slowly waning although we still enjoyed more than 80% of sectors closing in positive territory, the Tech Sector led the line rallying +3.25%. The month to month stock & sector rotation continues to dominate proceedings under the hood e.g. the Energy Sector has been the standout of 2022 yet now it finds itself almost friendless while the hammered growth names are rallying akin a popping champagne cork, last week illustrated this perfectly:
The ASX200 rallied over 150-points last week taking the local markets gain to more than +5% in just 2-weeks, investors switched in earnest from defensive stocks & sectors just in time for MM to trim a few positions as indices reached our initial target for July. Interestingly it wasn’t the tech stocks which benefited on falling yields as the market continues look beyond the obvious, or perhaps simply 6-months in advance i.e. resources benefitted on the premise that central banks would be easing off on the rate hikes to avoid a recession.
The ASX200 enjoyed a strong week which saw the index rally +2.8% making fresh 5-week highs in the process, the Tech and Financials led the charge while only the defensive facing Healthcare and Consumer Staples Sector slipped slightly lower i.e. “risk on” has kicked back into vogue with a vengeance. However as we alluded to on Friday MM still labels the current advance as a likely “short squeeze” as opposed to fund managers calling a meaningful market bottom...
The ASX200 experienced another choppy week which threatened to break out on both the up and downside, but after 2-weeks the broad market remains basically unchanged for July. However under the hood the market's throwing up some interesting sector rotation, when we consider the extremely hawkish economic data we’ve received from a different number of countries, the outperformance by the likes of tech and healthcare suggests investors are tweaking their portfolios towards “peak inflation” occurring around now, and a possible recession in 2023, the following moves so far this month are certainly pointing this way:
The ASX200 experienced a choppy week which threatened to unravel on Wednesday only to come good on the home stretch with the local index finally closing up over +2% on broad based buying which saw over 80% of the main board close higher come Friday afternoon. However the real action was in the Resources Sector which ultimately closed mixed, overall this feels like a good result considering the carnage which was witnessed on Wednesday:
The ASX200 got hit around -0.4% in the match on Friday taking the index down 0.6% for a week which promised so much early on, the market was over 200-points higher on Tuesday afternoon! Weakness through the local market was most prevalent in sectors traditionally sensitive to an economic downturn courtesy off escalating recession fears e.g. Real Estate & Retail, while IT stocks failed to find encouragement from a pullback in bond yields. Through the week much of the day to day volatility was delivered by the miners with heavyweight BHP Group (BHP) trading in a greater than 7% range. Downgrades have been flowing through the Resources Sector with some prominent names getting whacked – MM took advantage of the volatility to buy back into OZ Minerals (OZL) as it hit fresh 18-month lows.
Last week saw the ASX200 stabilise and following a strong session on Friday even manage to close up +1.6% over the 5-days, an impressive effort considering the Resources Sector tumbled over -4.5% e.g. over the week we saw OZ Minerals (OZL) -5%, BHP Group (BHP) -5.9% and Santos (STO) -7.3%. MM have been talking about the potential for tech and growth stocks to bounce strongly for a while and Friday finally saw such an aggressive “risk on” move unfold as bond yields edge lower on recession fears although at MM we feel the tail end of tax loss selling probably helped release the cork from this particular bottle. Wherever we looked underperforming high beta stocks rallied strongly:
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