Viewpoint: Bullish
US stocks soared higher overnight with the NASDAQ breaking out of its recent 5-week trading range, we believe it’s a matter of time before the broad-based S&P500 follows suit as the bear market squeeze MM has been looking for finally feels underway.
The ASX200 surrendered some of Mondays gains yesterday on broad-based selling after the RBA minutes and a speech from Deputy Governor Bullock heightened interest rate concerns sending the yield-sensitive growth stocks back into the loser’s enclosure.
HUB -4.97%: Sold off today after releasing the 4Q22 net flows of $2.5bn and total Funds Under Administration (FUA) of $65.6bn, up +12% YoY. The quarterly numbers were pre-released and represented 21% of annual flows which is below the 31% skew in FY19 and 33% in FY21, and this we suspect is the source of the market’s discontent in the SP today aside from the general…
US stocks slipped lower overnight on comments from Apple around their future hiring policy, the reduced intake suggests that interest rate hikes have led to some uncertainty in the mega techs read on the economy moving forward, no great surprise but it led to Apple Inc (AAPL US) dipping -2.1% on the news dragging market sentiment in the process.
MM has been bullish on Australian tech over recent weeks and WTC keeps delivering, it rallied another +7.2% yesterday taking its bounce from mid-June to almost 40%. Technically the stock looks great and although it’s far from cheap we believe it will continue to lead the tech Sector higher into August with another 10-15% upside feeling likely sooner rather than later.
SUN rallied +6.1% on Monday as the market assumes all of the regulatory boxes will get ticked for ANZ to buy SUN’s banking division for a healthy $4.9bn, we will be left with another standalone pure insurance play with plenty of cash to flow back to shareholders over the coming years. The deal will allow SUN to focus on its core business and it could easily be re-rated…
The ASX200 enjoyed a strong Monday taking its lead from US indices both on Friday night and the S&P500 futures during our day session i.e. the broad-based US index rallied +1.9% on Friday and the futures were up another +0.7% when the ASX closed yesterday. The buying was broad-based on Monday with over 75% of stocks rallying as “risk on” was clearly the theme of the day with the IT, Resources…
LYC +0.74%: rare earth business Lynas announced their 4th quarter production numbers today with shares trading slightly higher despite a more cautious tone. Total NdPr production came in at 1,579t for the quarter, down around 6.5% from the previous quarter, with sales revenue falling more than 10% to $294.5m. The fall in production was blamed on a lack of supply of water in Malaysia with…
PPS +10.57%: the independent investment platform provided an impressive 4th quarter update today despite a small fall in the 3 months. Total Funds Under Administration (FUA) at the end of the year was $40.5b, up 10% over the year despite most asset classes falling in the period. FUA fell 4% in the quarter as inflows of $300m were more than offset by a negative investment performance…
European indices have understandably struggled through 2022 with the war raging on their doorstep leading to a painful and worsening domestic energy crisis. However the UK market has fared better largely aided by its lack of growth stocks but the weak mining sector has recently started to weigh on the FTSE, from a technical perspective it would be ideal to see a test of 2022 highs but it feels like the stars will need to perfectly align for this to now unfold.
