No Idea
On Wednesday every sector bar technology closed stronger and yesterday every sector bar two closed lower. When the opening bell rang yesterday nothing happened. By 11.30am the index had struggled to up ten points before heading south all afternoon.
The two sectors posting gains were materials (+1.4%) on a pop in the gold price and utilities (+0.7%) as Spark Infrastructure came out of its trading halt and rose another 6.1%. Spark is prepared to chat to the consortium on the hunt, but not to allow due diligence.
Given the market was not fazed about the extended Sydney lockdown on Wednesday, probably focusing on federal/state government assistance, the new Melbourne lockdown was likely not the trigger for the sell-off.
Bye now, see you later
It’s “at least” another two weeks of lockdown in Sydney (for “at least” read “until further notice” – it just sounds less scary) and masks back on in Victoria as case numbers grow. More borders shutting down. But the local market does not seemed at all fazed yesterday.
Discounting a flat session for REITs, all sectors closed in the green yesterday, bar one. But that one rather did it in style.
The tech sector fell -2.7%, led by Zip Co ((Z1P)), down -11.4%, Afterpay ((APT)) down -9.6% and Sezzle ((SZL)) down -10.3%. I sense a theme.
An additional news report on the recommendation, valuation, forecast and opinion changes for ASX-listed equities.
In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArena has now added The Australian Broker Call Extra Edition, featuring additional sources of research and insights on ASX-listed stocks, also enlarging the number of stocks that make up the FNArena universe.
One key difference is the Extra Edition will not be updated daily, but merely regularly depending on availability of suitable quality content. As such, the Extra Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.
An additional news report on the recommendation, valuation, forecast and opinion changes for ASX-listed equities.
In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArena has now added The Australian Broker Call Extra Edition, featuring additional sources of research and insights on ASX-listed stocks, also enlarging the number of stocks that make up the FNArena universe.
One key difference is the Extra Edition will not be updated daily, but merely regularly depending on availability of suitable quality content. As such, the Extra Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.
Jailhouse Rock
One might have expected the news that Sydney’s lockdown would be extended for a week, flagged ahead of yesterday’s 11am update, and the threat of some council areas going into even stricter lockdown, would be a negative for the stock market. But no.
The ASX200 opened higher yesterday and at the 11am confirmation just kept on going. There was a bit of a wobble in the afternoon but the index bounced off 7300 and kicked to the close. This despite a weak session on Wall Street.
The most notable asset price move yesterday was that of the ten-year bond yield, which fell -10 basis points to 1.36%, a day after the RBA announced tapering. The US equivalent had also dropped overnight, and did so again last night, rather confounding commentators.