Viewpoint: Bullish
Z1P +16.95%: Lead the index’s gainers today with a big jump on some strong quarterly numbers. The digital payments company saw revenue climb 83% on year to $112m as transaction volume hit $1.6b – more than double that of 3Q20.
The $A has slipped ~5% from its February high in very similar manner to the likes of BHP Group (BHP).
Fortescue Metals (FMG) has corrected ~30% from recent highs, although they did pay a big $1.47 fully franked dividend (equivalent to $2.10 grossed for franking) so the actual decline is nearer ~20%.
Silver is also looking very constructive here and potentially poised for a ~20% rally, we might see a flight to more defensive assets as we move towards the traditionally weak period for equities going into May.
Gold bounced last week and is now ~4% above the lows, hardly an aggressive move at this stage and the jury is still out on whether or not it can break it’s currently intrenched downtrend.
Not a lot of new news for the $A this week as it tracks back to the bottom of our targeted trading range which sits between 76c – 81c, hence by definition we are bullish short-term on the local currency which coincides with our bearish $US view.
Last week’s rally was largely confined to the large caps with the Russell 2000 small cap index treading water following their 10% correction in early March.
The MSCI World Index accelerated higher last week and after a couple of months of sideways price action the global benchmark has consistently made new highs trading up through our initial 2900 target level.
It’s hard to talk growth stocks without mentioning online accounting provider Xero (XRO) and after ‘another’ 30% correction – who says markets don’t repeat – we remain bullish.
MNY is a consumer finance business, they do things like car & personal loans both in Australia & New Zealand.
