Viewpoint: Bullish
The ASX200 has embraced the saying “what a difference a day makes” in consummate style over the last 48 hours i.e. down aggressively on Tuesday following the BoJ’s hawkish tweak on interest rate policy followed by a +1.3% recovery yesterday, the net difference being down just 18 points. The local market’s advance yesterday was broad-based…
Following the BOJ’s move yesterday we believe that Japan has commenced the hard journey to normalise interest rates and the Japanese Yen has started to correct its decade-long decline. The move by the BOJ’s Governor Haruhiko Kuroda has given investors a glimpse of what comes next when arguably the world’s boldest experiment with…
HCA is the largest hospital operator in the US providing around 5% of the country’s hospital services. Generating ~US$60bn a year in revenue and a profit of $US5bn, this is a big player operating ~50,000 beds in ~200 hospitals around the country, along with free-standing surgery centres and urgent care facilities. We originally bought HCA largely on…
The downgrade by Domain Holdings (DHG) yesterday on the back of weaker listing volumes created some wider peripheral damage, with REA Group (REA) and Nine (NEC) also feeling the repercussions. In terms of NEC which we own in our Emerging Companies Portfolio, they own 60% of DHG and are directly impacted. DHG made up ~14% of NEC’s earnings…
Gold rallied over $US30/Oz overnight which should add a nice tailwind to the local sector today, on balance we believe the $US can recoup some of its recent ~10% pullback which is likely to weigh on precious metals i.e. we wouldn’t be chasing precious metals at current levels in the short term.
US stocks suffered another weak session overnight led by Amazon (AMZN US) -3.4% and Meta Platforms (META US) -4.1%, we are still giving the index the benefit of the doubt for seasonal reasons but otherwise, it would be a 50-50 call as the S&P500 approaches 3800 support.
The gold sector rallied strongly yesterday led by Evolution (EVN) +4.3% and Northern Star (NST) +3.4% even while the precious metal hardly moved. This is another pocket on the index which MM believes is cheap presenting excellent risk reward especially if precious metals continue to remain firm.
NHC rallied over 4% yesterday in a subdued market making it the 4th best performer on the ASX200, the reason was simple, coal is rallying towards fresh 2022 highs following a recent International Energy Report which forecasted the fossil fuel would enjoy ongoing record demand due to the painful energy crisis. While they didn’t flag huge increases in demand it’s important to remember that coal stocks are currently high yielding and cheap being priced for lower, not higher coal prices.
The ASX200 put in a valiant effort yesterday considering Friday’s weakness on Wall Street, for much of the session it actually felt like we were witnessing the dawn of another “Christmas Rally” before the index ultimately closed down just -0.2% with the Real Estate Sector falling -1.1% the weakest link. Conversely, the Energy Sector again rallied solidly…
PRN +10.60%: The mining services company that used to be known as Ausdrill upped their FY23 guidance today saying that improved conditions and a contract for work at Evolution Mining’s Ernest Henry mine were the main drivers i.e. operational performance rather than anything else.
