October has started in a very similar vein to September, with the ASX200 already down -1.3% as rising long-term bond yields continue to rattle equities. Over the last week, all eleven sectors closed lower with little respite for the bulls, with the index breaking to fresh lows for 2023, led by weakness in the energy and consumer discretionary names. It was a tough start to the new month for the MM Flagship Growth Portfolio, which holds a few of the standout losers last week courtesy of the aggressive “risk off” sentiment:
September is finally in the rear-view mirror with the ASX200 ending the month down -3.5% (excluding dividends). However, it was encouraging last week to see some “buying into dips” enter the market, with the index often ending at its highs for the day, the Energy Sector +1.98% was again the shining light while the rate-sensitive Tech and Real Estate Sectors, struggled, both falling over -1%. Bond yields again dominated proceedings as they continued to challenge their decade-highs, which led to further stock/sector rotation:
We’re entering the last week of September, and even after Friday's stellar recovery from the early lows, the local index is still down -3.2% with just five trading days remaining. The action was “fast & furious” during the week as investors strived to fathom the path of interest rates/bond yields into and through 2024. At MM, we don’t believe there were many surprises from central banks, but the volatility across equities suggests we were in the minority:
We’re halfway through September, the seasonally weakest month of the year for the local market, and it's so far so good, with the ASX200 down just -0.4% following Fridays +1.3% advance. The Materials Sector sprang to life after the PBOC cut reserve requirements, MM we’ve been waiting for Beijing to pull the stimulus lever, which would have investors believing that the world's second-largest economy can return to solid economic growth - We may have just witnessed this very catalyst last week. By the end of the week, 8 of the market's 11 sectors had closed higher, but it was the +3.9% move by the Materials Index which helped catapult the ASX200 up +1.7%, the Financials came in a distant second up +2.5%.
The first week of September proved to be a week to forget for the ASX200 as it fell -1.67%, with most of the weakness unfolding over the last three days. The sell-off was broad-based, with 10 of 11 sectors closing lower, with the Materials, Consumer Discretionary and Tech sectors faring the worst. In contrast, only the Energy Sector closed positive edging up just +0.6%. Under the hood, the falls were distorted in places by some significant names trading ex-dividend, but some of the movers which caught our attention over the week are as follows:
The ASX200 rallied over 200 points in the last few days of August but it was a step too far on Friday as local stocks drifted lower into the weekend, overall a good week that capped August's decline to just -1.4 %. Obviously, September has started off on the back foot but there are still 4-weeks to go before we can pass judgement as to whether this month will live up to its seasonal poor reputation. The index finally closed up +2.3% last week as we watched the end of the reporting season unfold over the 5 days, all 11 sectors closed up with the consumer Discretionary and heavyweight Materials & Financials leading the charge. A number of underperformers over the last year figured prominently in the winner's enclosure
The ASX200 ended just -0.5% lower last week but it was far more eventful on both the stock and sector level as reporting season and uncertain global indices continue to pull the market in different directions e.g. the Consumer Discretionary Sector advanced +1.8% while the Healthcare, Consumer Staples and the Utilities Sectors all fell well over -2%. However, it was on the stock level that Reporting Season lit up our screens in both directions, whatever company size or sector:
The ASX200 ended last week down another -2.6% taking August’s pullback to -3.5% with two weeks still remaining. Escalating concerns around the Chinese economy combined with an ever-hawkish Fed saw buyers run for the hills with the influential Financial & Materials Sectors standout detractors ending the week down -3.6% and -4.3% respectively. Only the Real Estate and Healthcare Sectors closed higher over the 5-days with positive earnings as the main drivers in both cases i.e. Goodman Group (GMG) +11% and Cochlear (COH) +11.9%.
The ASX200 ended the week up just 0.2% with much of the action unfolding on the sector level as would be expected during reporting season. The Consumer Discretionary Sector was the best on the ground closing up almost +2% as the market became more optimistic towards the global economy - JP Morgan & Bank of America both scrapped their recession calls this week i.e., the “Goldilocks” scenario. It was a rare week for this year to see the Tech Sector as the market's worst performer closing down -1.6% as investors started to reposition themselves for a brighter 2H. On the stock level, the big moves were dominated by reporting season plus a sprinkling of general news:
The ASX200 ended the week down only -1.1%, it certainly felt much worse over the course of the 5 days following the downgrade of US Debt by rating agency Fitch. The yield-sensitive sectors dragged the market lower with the Utilities -3.4% and Real Estate -2.5% dominating the loser's enclosure while only the Consumer Discretionary Sector closed higher. Longer-dated bond yields rallied into Friday's US Employment data which is likely to have weighed on both of these sectors which have been looking for an end to the hiking cycle by central banks – a reversal of this move by bonds following a pretty benign jobs report is likely to see the stocks/sectors also reverse.
September is finally in the rear-view mirror with the ASX200 ending the month down -3.5% (excluding dividends). However, it was encouraging last week to see some “buying into dips” enter the market, with the index often ending at its highs for the day, the Energy Sector +1.98% was again the shining light while the rate-sensitive Tech and Real Estate Sectors, struggled, both falling over -1%. Bond yields again dominated proceedings as they continued to challenge their decade-highs, which led to further stock/sector rotation:
We’re entering the last week of September, and even after Friday's stellar recovery from the early lows, the local index is still down -3.2% with just five trading days remaining. The action was “fast & furious” during the week as investors strived to fathom the path of interest rates/bond yields into and through 2024. At MM, we don’t believe there were many surprises from central banks, but the volatility across equities suggests we were in the minority:
We’re halfway through September, the seasonally weakest month of the year for the local market, and it's so far so good, with the ASX200 down just -0.4% following Fridays +1.3% advance. The Materials Sector sprang to life after the PBOC cut reserve requirements, MM we’ve been waiting for Beijing to pull the stimulus lever, which would have investors believing that the world's second-largest economy can return to solid economic growth - We may have just witnessed this very catalyst last week. By the end of the week, 8 of the market's 11 sectors had closed higher, but it was the +3.9% move by the Materials Index which helped catapult the ASX200 up +1.7%, the Financials came in a distant second up +2.5%.
The first week of September proved to be a week to forget for the ASX200 as it fell -1.67%, with most of the weakness unfolding over the last three days. The sell-off was broad-based, with 10 of 11 sectors closing lower, with the Materials, Consumer Discretionary and Tech sectors faring the worst. In contrast, only the Energy Sector closed positive edging up just +0.6%. Under the hood, the falls were distorted in places by some significant names trading ex-dividend, but some of the movers which caught our attention over the week are as follows:
The ASX200 rallied over 200 points in the last few days of August but it was a step too far on Friday as local stocks drifted lower into the weekend, overall a good week that capped August's decline to just -1.4 %. Obviously, September has started off on the back foot but there are still 4-weeks to go before we can pass judgement as to whether this month will live up to its seasonal poor reputation. The index finally closed up +2.3% last week as we watched the end of the reporting season unfold over the 5 days, all 11 sectors closed up with the consumer Discretionary and heavyweight Materials & Financials leading the charge. A number of underperformers over the last year figured prominently in the winner's enclosure
The ASX200 ended just -0.5% lower last week but it was far more eventful on both the stock and sector level as reporting season and uncertain global indices continue to pull the market in different directions e.g. the Consumer Discretionary Sector advanced +1.8% while the Healthcare, Consumer Staples and the Utilities Sectors all fell well over -2%. However, it was on the stock level that Reporting Season lit up our screens in both directions, whatever company size or sector:
The ASX200 ended last week down another -2.6% taking August’s pullback to -3.5% with two weeks still remaining. Escalating concerns around the Chinese economy combined with an ever-hawkish Fed saw buyers run for the hills with the influential Financial & Materials Sectors standout detractors ending the week down -3.6% and -4.3% respectively. Only the Real Estate and Healthcare Sectors closed higher over the 5-days with positive earnings as the main drivers in both cases i.e. Goodman Group (GMG) +11% and Cochlear (COH) +11.9%.
The ASX200 ended the week up just 0.2% with much of the action unfolding on the sector level as would be expected during reporting season. The Consumer Discretionary Sector was the best on the ground closing up almost +2% as the market became more optimistic towards the global economy - JP Morgan & Bank of America both scrapped their recession calls this week i.e., the “Goldilocks” scenario. It was a rare week for this year to see the Tech Sector as the market's worst performer closing down -1.6% as investors started to reposition themselves for a brighter 2H. On the stock level, the big moves were dominated by reporting season plus a sprinkling of general news:
The ASX200 ended the week down only -1.1%, it certainly felt much worse over the course of the 5 days following the downgrade of US Debt by rating agency Fitch. The yield-sensitive sectors dragged the market lower with the Utilities -3.4% and Real Estate -2.5% dominating the loser's enclosure while only the Consumer Discretionary Sector closed higher. Longer-dated bond yields rallied into Friday's US Employment data which is likely to have weighed on both of these sectors which have been looking for an end to the hiking cycle by central banks – a reversal of this move by bonds following a pretty benign jobs report is likely to see the stocks/sectors also reverse.
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