This week saw the ASX200 initially test the upside, then the downside with some gusto, only to close out the week marginally higher courtesy of a strong close on Friday. Under the hood we saw solid gains from the IT and banking stocks while the resources sector experienced some profit taking as all the major names retreated by over 2%
This week saw the ASX200 surrender all of its gains for May In just 3-days as the mantra of “buy on dips” appeared to revert to “sell the rallies”, the net 1% decline would have indeed been far worse if heavyweights Commonwealth Bank (CBA) and CSL Ltd (CSL) hadn’t enjoyed sold gains.
The ASX200 has kicked off May in similar manner to much of April as it grinds higher with stock and sector rotation dominating proceedings. There were a number of interesting swings under the hood with the following catching my eye or though both lists could easily have been much longer with plenty of volatility in a number of pockets of the index :
Winners : Commonwealth Bank (CBA) +5.5%, Westpac (WBC) +4.4%, QBE Insurance (QBE) +7.8%, BHP Group (BHP) +5% and OZ Minerals (OZL) +7.4%.
Losers : ANZ Bank (ANZ) -3.4%, Ramsay Healthcare (RHC) -6.5%, Netwealth Group (WL) -9.8%, Afterpay (APT) -19% and Altium (ALU) -15%
The ASX200 ended April in a very different tone to the majority of the Easter month, local stocks closed down -0.8% with almost 70% of the index closing in the red. However even a weak Friday wasn’t enough to make a meaningful dent in the months performance with April still closing up +3.5% taking the annual gain to just over +6.5% year-to-date. The banks have dominated 2021 with ANZ Bank (ANZ) and Westpac (WBC) both up almost 30% while the local tech stocks has seen some of the biggest losses, a very different story to recent years and the US market where the NASDAQ again made fresh all-time highs last week.
The ASX200 continues to enjoy April with the index currently up 4% for the month, it closed on Friday less than 2% below its 2020 all-time high. We are still looking for a decent pullback / period of consolidation from current levels but the current optimism is shrugging off any bad news that crosses the wires hence MM is not going out on a limb and saying a meaningful top is imminent just that the that risk/ reward advocates a degree of caution.
The ASX200 is thoroughly enjoying April and last year’s all-time high is now less than 2% away, our “gut feel” is the local index will fail to scale the 7200 area near future but we are far more optimistic moving forward. Under the hood last week was a mixed showing with banks ok but diversified financials strong while healthcare, gold, real estate and IT lead the gains i.e. the best performers were stocks that enjoy a lower interest rate environment.
Last week was a strong one for global equity markets and it was particularly pleasing to see some slight local out performance with the ASX 200 adding 3.01% to settle just shy of 7000. The broad S&P 500 ended the week up 2.71% while the technology stocks pushed the Nasdaq 3.12% higher. European stocks were also strong, the UK based FTSE 100 also adding 3.01% ahead of lock downs being eased this week.
Last week wrapped up Q1 of 2021 with the local market adding 3% for the 3 months, not a great effort given the backdrop of US markets which were up closer to 8%. We continued to see the broad trading range play out on the S&P/ASX 200 roughly between 6500 & 6900. When a market trades in a consolidation range for a number of months, the longer it stays there the more significant the eventual breakout is when it happens, sort of like a spring getting compressed until the pressure is released and bang, it propels itself in one direction or another.
Today's Q&A note focuses largely on stocks that are underwater that MM holds across portfolios. Looking after / addressing the losers is very important when managing portfolios.
Last week again felt like tough going for the ASX200 as we slipped ~1% over the 5-days with some rotation back from value to growth stocks evident under the hood. Over the last few weeks the local market has failed to embrace the push to fresh all-time highs by most US indices leaving us neutral to negative over the coming weeks with another test of 6500 for the local index looking a strong possibility as the Banks and Resources Sectors surrender some of the 2021 gains i.e. now only 3% lower.
This week saw the ASX200 surrender all of its gains for May In just 3-days as the mantra of “buy on dips” appeared to revert to “sell the rallies”, the net 1% decline would have indeed been far worse if heavyweights Commonwealth Bank (CBA) and CSL Ltd (CSL) hadn’t enjoyed sold gains.
The ASX200 has kicked off May in similar manner to much of April as it grinds higher with stock and sector rotation dominating proceedings. There were a number of interesting swings under the hood with the following catching my eye or though both lists could easily have been much longer with plenty of volatility in a number of pockets of the index :
Winners : Commonwealth Bank (CBA) +5.5%, Westpac (WBC) +4.4%, QBE Insurance (QBE) +7.8%, BHP Group (BHP) +5% and OZ Minerals (OZL) +7.4%.
Losers : ANZ Bank (ANZ) -3.4%, Ramsay Healthcare (RHC) -6.5%, Netwealth Group (WL) -9.8%, Afterpay (APT) -19% and Altium (ALU) -15%
The ASX200 ended April in a very different tone to the majority of the Easter month, local stocks closed down -0.8% with almost 70% of the index closing in the red. However even a weak Friday wasn’t enough to make a meaningful dent in the months performance with April still closing up +3.5% taking the annual gain to just over +6.5% year-to-date. The banks have dominated 2021 with ANZ Bank (ANZ) and Westpac (WBC) both up almost 30% while the local tech stocks has seen some of the biggest losses, a very different story to recent years and the US market where the NASDAQ again made fresh all-time highs last week.
The ASX200 continues to enjoy April with the index currently up 4% for the month, it closed on Friday less than 2% below its 2020 all-time high. We are still looking for a decent pullback / period of consolidation from current levels but the current optimism is shrugging off any bad news that crosses the wires hence MM is not going out on a limb and saying a meaningful top is imminent just that the that risk/ reward advocates a degree of caution.
The ASX200 is thoroughly enjoying April and last year’s all-time high is now less than 2% away, our “gut feel” is the local index will fail to scale the 7200 area near future but we are far more optimistic moving forward. Under the hood last week was a mixed showing with banks ok but diversified financials strong while healthcare, gold, real estate and IT lead the gains i.e. the best performers were stocks that enjoy a lower interest rate environment.
Last week was a strong one for global equity markets and it was particularly pleasing to see some slight local out performance with the ASX 200 adding 3.01% to settle just shy of 7000. The broad S&P 500 ended the week up 2.71% while the technology stocks pushed the Nasdaq 3.12% higher. European stocks were also strong, the UK based FTSE 100 also adding 3.01% ahead of lock downs being eased this week.
Last week wrapped up Q1 of 2021 with the local market adding 3% for the 3 months, not a great effort given the backdrop of US markets which were up closer to 8%. We continued to see the broad trading range play out on the S&P/ASX 200 roughly between 6500 & 6900. When a market trades in a consolidation range for a number of months, the longer it stays there the more significant the eventual breakout is when it happens, sort of like a spring getting compressed until the pressure is released and bang, it propels itself in one direction or another.
Today's Q&A note focuses largely on stocks that are underwater that MM holds across portfolios. Looking after / addressing the losers is very important when managing portfolios.
Last week again felt like tough going for the ASX200 as we slipped ~1% over the 5-days with some rotation back from value to growth stocks evident under the hood. Over the last few weeks the local market has failed to embrace the push to fresh all-time highs by most US indices leaving us neutral to negative over the coming weeks with another test of 6500 for the local index looking a strong possibility as the Banks and Resources Sectors surrender some of the 2021 gains i.e. now only 3% lower.
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