Viewpoint: Bullish
FBU is a NZ based manufacturer and seller of building products such as cement, plasterboard and lumber
BKW manufactures and sells bricks, pavers and floor tiles, products that clearly enjoy a strong property and construction environment.
ABC supplies construction materials such as cement and concrete which we believe should enjoy strength in building through 2021. We like ABC believing it to fairly cheap at current levels plus the forecasted 3.7% fully franked yield over the next 12-months is clearly attractive for investors.
When we cast our eye to the US Building Sector the picture remains very healthy with the Building Products Index shown below up over 100% from its COVID March low.
BHP has corrected back to major support which we flagged as likely a few weeks ago.
The rally by building stocks caught my attention yesterday in what was another fairly lacklustre session.
As we mentioned yesterday the Hang Seng has now fallen over 10% in just a few weeks but as we’ve seen repeatedly in 2020-2021 when things look their worst investors should consider fading the move
US stocks were again mixed overnight but the strong close by the S&P500, even as tech stocks languished, makes us give the bullish trend the benefit of the doubt and target another test of 4000 in the coming weeks.
The ASX has been a poor performer over the last 6-months with the stock sliding ~28% in a rising market. CBOE Global Markets, the 3rd largest exchange operator in the US, has now bought Chi-X the local competitor to the ASX in a move that should address regulators concerns .
AMP may be a household name but its branding hasn’t been enough to stop the share price falling into the abyss. Rumours have been circulating that CEO Francesco De Ferrari might be about to depart in the next few days unfortunately we believe this would be a move the market will take badly.
