And Back Again
Indications that the GameStop game had blown itself out on Wall Street was enough for bargain hunters to hit the Australian market yesterday for fear of missing out. But for a couple of sectors, it was a “buy everything” session.
It was a week ago when the ASX200 suddenly plunged from a prior closing level of 6781, and yesterday the index closed at 6824. A 90 point rally at the peak gave way to only 60 points, suggesting a few of last week’s early movers locked in short term profits in the afternoon.
The banks were the major drivers, rising 1.5%. This time healthcare was not the funding source – it rose 2.0%. Telcos, energy, discretionary and even utilities all joined the one percent-plus club.
Summary:
The Short Report has now returned to its regular weekly update cycle.
We note that the cut-off for this report was Thursday last, which happened to be the day the great US short squeeze debacle sent our market tanking. Looking at the table below, the only conclusion is this was blind madness on Australia’s part.
It is nothing but Dullsville in local Short Land at present. Last week saw only one short position movement of one percentage point or more, and the total 5%-plus table remains as short (in length) as it’s ever been.
That one stock was Zip Co ((Z1P)) which supposedly the local wags tried to “do a GameStop” on. Its shorts fell to 5.4% from 6.7%.
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The best, the worst, and most extreme : The ASX winners and losers in a year like no other
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The sharemarket is no sure bet at the best of times but few investors could have predicted the twists of 2020 or the winners and losers along the way.
“A lot of people have talked about it being the best, the worst and most extreme,” says Tribeca portfolio manager Jun Bei Liu. “I saw the GFC and I haven’t seen volatility like this.”
From all-time highs to record lows and a nine-month march almost back to where it began, it was a year of extremes for ASX traders who battled an unprecedented set of conditions.