The AX200 enjoyed a strong end to the week making fresh highs for October on Friday as the unusual combination of Tech and Resources banded together to drag the index into positive territory for the week. Suddenly the statistics & seasonality factors are combining nicely for the bulls:
As we make new highs for the month on the 15th the strong likelihood is we’ve not only seen the low for October at 7157 but also the quarter which has very bullish implications.
The average quarterly range since the COVID outbreak is well over 500-points implying from extrapolation that there’s a strong likelihood that the ASX200 can achie
The AX200 staged a solid recovery last week closing the shortened week, for some, up 1.87% with the Energy & Financial Sectors leading the line but with only the healthcare names closing in the red it was an encouraging solid broad-based effort. It still doesn’t feel like any “new money” is entering the market but with 3 of the “Big 4” banks due to trade ex-dividend in November we may see some buying in anticipation of the attractive payouts plus of course a large portion of these funds often returns to the market – the next few weeks is historically a very strong time for the sector which has a major positive influence on the local index.
The AX200 waved goodbye to September on a positive note only for October to start with a 2% plunge, history tells us this is usually an excellent time to start accumulating stocks but as is always the case near lows equities certainly feel vulnerable to further declines. Investors have started considering the attractive dividends on offer from the banks in November plus of course the much anticipated “Santa Claus Rally” but there are a couple of important hurdles to be cleared
Trading on the ASX was dominated last week by China Evergrande as the massive property developer watched its stock continue to crash as doubts whether it could meet looming interest payments intensified by the day - the company only owes a mere $US305bn, or more than twice the market cap of BHP Group (BHP)
The ASX200 closed last week little changed but under the hood the market was anything but quiet on both the stock & sector level. The influential banks, healthcare and IT names were firm while the resources and utilities struggled but on the week it was almost impossible to look past the collapse of the markets major iron ore stocks, the more dependent the company is on the bulk commodity price for its revenue the harder it fell
The ASX200 experienced some September wobbles last week finally closing down 116-points / 1.5%, all 11-sectors closed in the red with the Materials & Real Estate stocks worst on ground. Fridays was a classic mean reversion session with many stocks which endured a tough week managing to bounce, and vice versa. A couple of themes caught my attention through the relatively volatile week:
The ASX200 has commenced September in similar fashion to most of the year, if the rhythm remains the same we are likely to see a breach of 7700 before we enter the final quarter of 2021. This weeks small gain was spearheaded by an aggressive advance by the medium size resource stocks e.g. Alumina (AWC) +19%, Whitehaven Coal (WHC) +18% and South32 (S32) + 13% who appeared to embrace any stabilisation by the commodities markets.
The ASX200 delivered a fascinating week under-the-hood even while the index hardly moved, on the sector level it was also fairly quiet as we all focused on the big hits and misses as corporate Australia faced the music – 8 stocks finished the week down 10%, or more, while an impressive 12 companies ended the week higher by the same degree, in other words 1 out 10 ASX200 stocks moved by more than 10% over the 5-days.
The ASX200 struggled last week finally closing down 168-points / 2.2% as the Resources Sector fell from grace with a bang e.g. BHP Group (BHP) -16%, RIO Tinto (RIO) -10.9%, OZ Minerals (OZL) -9.5% and Independence Group (IGO) -10.6%.
We actually saw 6 of the 11 market sectors rally last week but when the mighty banks and resources fall the ASX is always going struggle and last week was no exception.
Another week and almost another 100-points as the ASX200 rallies ever higher posting new all-time highs along its merry way. Reporting season maintained its bullish tailwind for equities with the hugely influential Financial Sector the main beneficiary over the week - a huge positive impact on the local index which is currently made up...
The AX200 staged a solid recovery last week closing the shortened week, for some, up 1.87% with the Energy & Financial Sectors leading the line but with only the healthcare names closing in the red it was an encouraging solid broad-based effort. It still doesn’t feel like any “new money” is entering the market but with 3 of the “Big 4” banks due to trade ex-dividend in November we may see some buying in anticipation of the attractive payouts plus of course a large portion of these funds often returns to the market – the next few weeks is historically a very strong time for the sector which has a major positive influence on the local index.
The AX200 waved goodbye to September on a positive note only for October to start with a 2% plunge, history tells us this is usually an excellent time to start accumulating stocks but as is always the case near lows equities certainly feel vulnerable to further declines. Investors have started considering the attractive dividends on offer from the banks in November plus of course the much anticipated “Santa Claus Rally” but there are a couple of important hurdles to be cleared
Trading on the ASX was dominated last week by China Evergrande as the massive property developer watched its stock continue to crash as doubts whether it could meet looming interest payments intensified by the day - the company only owes a mere $US305bn, or more than twice the market cap of BHP Group (BHP)
The ASX200 closed last week little changed but under the hood the market was anything but quiet on both the stock & sector level. The influential banks, healthcare and IT names were firm while the resources and utilities struggled but on the week it was almost impossible to look past the collapse of the markets major iron ore stocks, the more dependent the company is on the bulk commodity price for its revenue the harder it fell
The ASX200 experienced some September wobbles last week finally closing down 116-points / 1.5%, all 11-sectors closed in the red with the Materials & Real Estate stocks worst on ground. Fridays was a classic mean reversion session with many stocks which endured a tough week managing to bounce, and vice versa. A couple of themes caught my attention through the relatively volatile week:
The ASX200 has commenced September in similar fashion to most of the year, if the rhythm remains the same we are likely to see a breach of 7700 before we enter the final quarter of 2021. This weeks small gain was spearheaded by an aggressive advance by the medium size resource stocks e.g. Alumina (AWC) +19%, Whitehaven Coal (WHC) +18% and South32 (S32) + 13% who appeared to embrace any stabilisation by the commodities markets.
The ASX200 delivered a fascinating week under-the-hood even while the index hardly moved, on the sector level it was also fairly quiet as we all focused on the big hits and misses as corporate Australia faced the music – 8 stocks finished the week down 10%, or more, while an impressive 12 companies ended the week higher by the same degree, in other words 1 out 10 ASX200 stocks moved by more than 10% over the 5-days.
The ASX200 struggled last week finally closing down 168-points / 2.2% as the Resources Sector fell from grace with a bang e.g. BHP Group (BHP) -16%, RIO Tinto (RIO) -10.9%, OZ Minerals (OZL) -9.5% and Independence Group (IGO) -10.6%.
We actually saw 6 of the 11 market sectors rally last week but when the mighty banks and resources fall the ASX is always going struggle and last week was no exception.
Another week and almost another 100-points as the ASX200 rallies ever higher posting new all-time highs along its merry way. Reporting season maintained its bullish tailwind for equities with the hugely influential Financial Sector the main beneficiary over the week - a huge positive impact on the local index which is currently made up...
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