Viewpoint: Bullish
A new financial year is upon us and if its only half as good as FY20/21’s it will still be well above the average performance of recent decades but with the tailwind of huge fiscal and monetary stimulus diminishing fast MM believes the next year is likely to be very different to the last one.
TLS +4.44%: Rallied today after announcing the sale of a 49% stake in its mobile infrastructure business InfraCo Towers to a consortium comprising the Future Fund, Commonwealth Superannuation Corporation and SunSuper for $2.8 billion.
A trading halt yesterday had rumour swirling that Rhipe was the latest Aussie tech company to be caught up in M&A (following Altium (ALU) & Iress (IRE) in recent weeks).
Portfolio holding Metcash (MTS) this week announced their full year results (April year-end) along with an off-market buy-back of up to $175m which will be very good for some holders.
We’ve discussed NXL a number of times this month but yesterday it finally caught my eye for the right reasons rallying +5% to be the markets 2nd best performer even as the old CFO and family members are charged with insider trading.
Even as the national soccer team lost overnight to the old enemy England the German stock market managed to eke out some reasonable gains as the market continues to climb a wall of worry.
This month’s comments from the Fed sent the $US up in tandem with its shorter dated bond yields, after consolidating these gains for over a week, last night’s strong advance was triggered by global outbreaks of the COVID Delta strain which is questioning the speed of the future global economic recovery – unfortunately Australia was a contributing factor to this move.
The ASX200 fell early yesterday only to recover virtually all of the losses after midday to close down just 0.1% – how many times have we written that in the last 12-months!
Chemical and explosives business ORI has endured a really tough year falling -16.7% in a rising market and the decline since late 2019 has actually been far worse.
General insurance business IAG has fallen -10.2% this year while other sector names have rallied strongly e.g. QBE Insurance (QBE) +24.5% and NIB Holdings (NHF) +38.9%.
