The market bounce from recent lows has been fairly impressive, with the ASX 200 adding +260 points. This large rebound from the lows of 10th February of 4,730 points, saw the ASX 200 finish at 4,992 (+5.5%) yesterday. The turnaround in oil, commodity stocks and the reengagement of the yield trade in banks has driven […]
Local shares are set for a strong start with the futures pointing to a 1.7% rise after global equities rallied overnight, fuelled by a more than 7% rise in the price of oil. BHP also added 7% in London, with the Australian Dollar advancing 0.8%. The strong gains in oil resulted from news breaking that […]
The relief rally continued yesterday in the Australian market signalling to all investors three things; 1. The offshore driven sell-off continues to be worth using as a trigger for prudent stock accumulation, 2. Reporting season thus far has been in line with expectations in the larger end of the market, and 3. Some of the […]
Local shares look set to extend Monday’s advance as European stocks rallied, paced by banks and car makers. SPI futures were up 25 points, while the $A was up 0.6% at 4am Sydney time. Also oil was up overnight on reports that energy ministers from Russia, Saudi Arabia and Venezuela are gathering in Qatar for […]
The market is now firmly at a level where taking risk will be rewarded, from what we have seen from earnings season thus far the economy is going “ok”. The offshore driven sell-off in global credit has hit our index hard, mainly due to the fact that such a large portion of the ASX 200 […]
The DOW recovered from early losses overnight, to finish quite flat (0.08%), as the market continued to digest global banking worries. Energy stocks also dragged on global markets, with oil reversing previous short term gains, large falls were seen over continued concerns of an increasing supply glut. We are expecting our local market to open […]
The market still continues to trade on US Fed interest rate policy expectations. We still believe that many hedge funds are still trying to profit from the Fed subsidy of past stimulus. Investors remain loaded in risk assets in the US, incentivized by the need to beat peers and benchmarks, and comforted into complacency by […]
Market volumes remain low and buying interest from the large end of town appears to have subsided, with the ASX 200 back around the 5,250 mark. Our core contention remains that the market will continue to trade in a band of 4,900-5,300 points. The market seems to be wedged between a weak global backdrop, and […]
With the ASX 200 back at 5,268 points, we still believe the most effective strategy remains a selective one. Broad based buying on index ETF’s probably had to be done at or below 5,000 points. Our stock selection process still remains grounded to balance sheet strength (low debt), robust industry structures and looking for undervalued […]
As long term investors it’s worth revisiting some of the key drivers of the market direction in the last two weeks. The bounce in the ASX 200 from its lows was effectivity caused by a surprise of the FED’s interest rate stance. This saw hedge funds begin “covering” their short positions in the Australian market, […]