Viewpoint: Bullish
Yesterday saw copper miner SFR plunge over -13% after they delivered a weaker-than-expected Q1 result – lower production pushed up costs, an issue which has been witnessed across a few miners this year. Unfortunately, now this leaves SFR heavily reliant on a strong 2H to achieve full-year guidance, not ideal when we own it in our Flagship Growth…
The ASX200 fell over -1% yesterday on broad-based selling which saw over 80% of the leading index close in the red, only the Energy and Financial Sectors managed to close up on the day. The local market continues to rotate in the 6625-6825 region and with the next Fed policy decision due in less than 2-weeks investors feel reticent to take equities towards…
WDS +6.18% Was a rare beacon of green today following their record output in the September quarter with sales up 70% to $9.3bn thanks in part to the acquisition of BHP’s Petroleum division. They also increased full-year guidance in an update that was hard to fault.
This week grocery and hardware wholesaler MTS put on a 2-day investor briefing in Adelaide, and the message from the suppliers to IGA, Foodland, Porters Liquor, Mitre 10 & more was solid:
Overnight we saw US stocks surrender early gains after bond yields again posted fresh 2022 highs on worries the Fed will remain hawkish and ultimately push the US economy into a recession. The 35th anniversary of the ’87 crash failed to deliver a sustained recovery which as we’ve said previously makes sense with the Fed looming just 2-weeks away.
The fund manager posted a better-than-feared quarterly update yesterday and while flows of -$2.3bn were negative, it showed a significant improvement (slowdown) versus recent qtrs (3Q -$4.0bn) and better than the market had feared.
Overnight we saw US stocks surrender early gains after bond yields again posted fresh 2022 highs on worries the Fed will remain hawkish and ultimately push the US economy into a recession. The 35th anniversary of the ’87 crash failed to deliver a sustained recovery which as we’ve said previously makes sense with the Fed looming just 2-weeks away.
The ASX200 enjoyed another strong session on Wednesday to close the day up +0.3%, taking it back above the psychological 6800 level. Most of the action on a relatively quiet day unfolded on the stock level with the battery metal stocks bouncing nicely whereas one of MM’s holdings Megaport (MP1) was clobbered after failing to meet growth expectations, more on this later. We continue to feel the…
BHP -0.96%: A good quarterly update from BHP today provides a strong start to FY23. No change to any FY23 guidance projections and no update on the bid for Oz Minerals (offer at $25/share).
Today we have looked at another of our painful positions, our bullish stance towards Asian tech on relative value grounds has been smacked on 2 fronts, ongoing regulatory controls out of both China & the US plus of course surging bond yields has weighed on the entire global tech sector – we bought after the sector had dipped ~30% but it was clearly still way too soon.
