Market movements

A material day for ASX tech.

The bounce today was largely a function of the aforementioned US inflation print (out overnight) which reversed some of the recent uptick in yields.

The wealth platforms benefitted from ongoing flows, at the expense of the legacy platforms (everyone from CFS to AMP), a trend that we think will continue.

The lower real rates were also a net positive for the gold miners, which featured prominently on the leaders list.

The other end of the market was more a hodgepodge of odds and sodds. Energy, interestingly, was a laggard, despite another positive day (and night, as implied by futures) for the oil price. China’s attempts to increase coal production, and to release strategic reserves, arguably did the damage to sentiment, if nothing else, for the energy plays.

Redbubble’s trading update was a disappointment to market, and we continue to think that the expected earnings trajectory looks overly bullish.

Overall, we remain underweight IT, as a sector, viewing it as a) overvalued and b) a long duration growth play, which is unappealing given our view on rates.

That said, we do have an exposure to ASX (the monopoly bourse operator) which, a bit like CSL, provides the portfolio with a solid factor loading to Quality (as a factor premia).

Important Information: This document has been prepared by Aequitas Investment Partners ABN 92 644 165 266 (“Aequitas”, “our”, “we”), a Corporate Authorised Representative (no. 1284389) of C2 Financial Services, (Australian Financial Services Licensee no. 502171), and is for distribution within Australia to wholesale clients and financial advisers only.

This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.

Please note that past performance is not a reliable indicator of future performance.

General Advice Warning: This document has been prepared without taking into account your objectives, financial situation or needs, and therefore you should consider its appropriateness, having regard to your objectives, financial situation and needs. Before making any decision about whether to acquire a financial product, you should obtain and read the relevant Product Disclosure Statement (PDS) or Investor Directed Portfolio Service Guide (IDPS Guide) and consider talking to a financial adviser.

Taxation warning: Any taxation considerations are general and based on present taxation laws and may be subject to change. Aequitas is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and investors should seek tax advice from a registered tax agent or a registered tax (financial) adviser if they intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.

Receive our investment insights

Something went wrong. Please check your entries and try again.