Viewpoint: Bullish
Goldman Sachs (GS US) was the last US investment bank to post quarterly earnings overnight and there is always a lot to learn in these numbers. They give us insight into how the biggest investment banks in the world are seeing things, more importantly through their actions rather than their rhetoric, while most of them also have large high street operations giving…
MM was delighted to see HUB soar over +14% yesterday after announcing net flows of $3.0bn and FUA of $68.4bn, up 8% year on year, taking it to the number one listed platform position for net flows. Overall it was a very strong quarterly update and a definite positive to see HUB lead the independent platforms on net flows despite trading at a discount on a PE…
US indices closed firmly this morning with the S&P500 up +1.1% but after opening with a bang the market saw its best early as half of the early gains slowly eroded away as investors remain understandably reticent to chase market strength. Apple Inc (AAPL US) was the backbone of the indexes advance from a points perspective but the main news hit the screens aftermarket…
The ASX200 itself has experienced 3 consecutive 100-point swings as it cannot decide whether it’s safe to recoup some of 2022’s losses. However our old friend the Bank of America’s Fund Managers Survey which was released last night provided some optimism for the bulls as the report basically screamed of “capitulation”:
SEK posted a solid +7.2% gain yesterday but in this case, for us to feel the stocks commenced a strong rally towards $25, and hopefully beyond, we need to see a clear weekly break above $22 – in other words both SEK and MP1 are looking encouraging but they’re not out of the woods just yet as the bond threat remains ever-present.
MP1 has looked after us since we went long only 3 weeks ago but its volatile stock which regularly swings ~10% intra-week hence our relatively small 3% position. It also releases a quarterly update this morning that could be a big swing factor. However, for all its bluster the stocks been in the same trading range for a few months and we need to see a close clear of $9 to believe the stocks set to commence a meaningful rally.
TWE +2.05%: Held their AGM today + also gave a 1Q23 trading update that was in line with company expectations, saying demand has been consistent in Premium / Luxe segments. They reiterated FY22 guidance for top-line growth and high single-digit average earnings growth over the long-term. They said that costs were expected to remain in line with FY22…
Overnight we saw US stocks enjoy a strong recovery after Fridays weakness, prices are moving up and down like a yoyo but we still believe the markets “looking for/has found a low” and will be higher come Christmas.
The ASX200 surrendered most of Friday’s gains yesterday as the market continues to rotate in the 6500-6800 region, it was the heavyweight resource stocks that weighed on Monday while the banks continued to look solid. Weakness was not too broad-based with 20% of stocks advancing but with BHP Group (BHP) -2.3%, RIO Tinto (RIO) -2.6% and CSL (CSL) -1.3% it’s hard for the index to perform on the day.
PPS +2.16%: 1Q23 result out today that was marginally ahead of estimates, with net inflows positive at $659m. Total Funds Under Administration (FUA) achieved $41.4b, up 3% on the same time last year, which is a good outcome given ASX200 0.8%. A big positive was still robust quarterly inflows – the best for three quarters since 2Q22 – offset my market revaluations of -$159m. Overall, a solid 1Q23 result although it’s unlikely that we’ll see any material changes to FY23 numbers.
