Viewpoint: Bullish
GMG is a quality growth name in our opinion its already suffered this year correcting over 15%. We bought the stock recently after we took profit on our Fortescue (FMG) position, MM will consider increasing our position if we see weakness under $22, or another 5% downside.
Precious metals enjoyed a strong move overnight with gold rallying over $US30/oz taking its to fresh 2-month highs even as the market factors in rising interest rates, a definite example of a market rallying on theoretically bad news. With the $US struggling and bond yields have already popped to multi year highs MM is comfortable with our overweight exposure to precious metals.
HUB rallied over 2% yesterday during a weak session for the ASX, the strong performance by the fintech platform provider came after it announced it had achieved net inflows of $6.7bn for the 2nd half of 2020. The great result equates to a 10.9% lift in FUA while at the same time its market share rose from 4.3% to 4.6% as the company continues to deliver. The excellent…
Yesterday felt like “15-love” to bond yields as the ASX200 was clobbered 76-points following a bad session on Wall Street which was then compounded by further weakness in the S&P500 futures during our day session. However 25% of stocks did still manage to close up on Wednesday with the gains feeling far more stock specific as opposed to…
BHP -0.3%: the Big Australian was out with their December Quarter update today highlighting operations for the first half which were largely as expected. Where it mattered in iron ore BHP hit the numbers, up 1% QoQ and maintaining guidance. A ramp up in production out of the South Flank operations were slightly offset by a lack of train operators…
HUB +2.12%: Some good news on a tough day for stocks with investment platform HUB 24 announcing a very strong quarterly Funds Under Administration (FUA) update with a another record period of flows. For 2Q22 net flows were +$3.6bn which was a material beat to our Shaw Analyst James Bisinella’s estimates of $2.4bn (+$1.2bn). Platform…
The investment platform business was out with a very strong 2Q update earlier in the week, a timely update which saw the stock bounce after a ~15% decline from highs. Inflows continue to remain strong with Funds Under Administration (FUA) jumping another 7% to $49b in the December quarter alone with the $1.25b jump the second largest on record. They recently…
US stocks experienced a volatile session overnight as rising oil prices and bond yields sent growth stocks and in particular tech running for cover, by the sessions end the NASDAQ had failed to bounce closing down 2.6%, I can literally feel the nerves building in this crowded space, we remain confident towards our elevated volatility call but short-term we can see a decent bounce for tech if yields slow on the upside.
We’ve mentioned QBE a few times recently as we monitor the insurer and US bond yields i.e. the insurer is one of the few beneficiaries of higher interest rates because it holds premiums in short dated bonds before paying out claims over the year. Assuming MM is correct over the coming months and the pop by US yields will fade we may see QBE…
Tuesday saw the Australian market slip just -0.1% after steadily surrendering the mornings gains through the afternoon, this morning we see another example of the ASX’s uncanny knack of picking major moves on overseas bourses. Yesterday saw only the Healthcare Sector move by over 1% and it was on the downside with losses pretty evenly…
