While much ado is made of the science that goes into fund manager research, real assessment puts comparable weight on the art as well according to investment leaders.
While financials and materials dominated trades leading into 2024, the popularity of other sectors like healthcare and information technology followed generational, and even demographic, lines.
Aussie market posts seven-week high
The Australian sharemarket lifted to its highest level in seven weeks on Monday, boosted by decent gains in nine out of the 11 sectors. The benchmark ASX/S&P 200 rose 43.7 points, or 0.6 per cent, or to 7294.9, while the broader All Ordinaries index advanced 38 points, or 0.5 per cent, to 7,489.2.
Healthcare was the standout, with the sub-index up 1.9 per cent as shares of CSL rallied $6.58, or 2.4 per cent, to $284.44 rebounding from last week’s 9 per cent slump. Fisher & Paykel Healthcare rose 42 cents, or 1.9 per cent, to $22.18; wound treatment stock Polynovo gained 6 cents, or 4 per cent, to $1.565; global hearing-aid leader Cochlear appreciated $2.81, or 1.2 per cent, to $241.64; and its sleep-breathing products equivalent, ResMed. added 48 cents, or 1.5 per cent, to $32.18
Woolworths led a rally in consumer staples, jumping 92 cents, or 2.4 per cent, to $39.54 after UBS upgraded the stock to a ‘buy’ rating. Liquor retailer Endeavour Group added 8 cents, or 1.3 per cent, to $6.04, and Coles was up 24 cents, or 1.3 per cent, to $18.33.
Tech was also on the rise, with semiconductor company Weebit Nano surging 58 cents, or 8.7 per cent, to $7.24; enterprise software company TechnologyOne up 20 cents, or 1.3 per cent, to $16.09; accounting software company Xero gaining $1.49, or 1.3 per cent, to $118.21; and logistics software leader WiseTech advanced 48 cents, or 0.8 per cent, to $80.56.
China concerns hit miners
Meanwhile, materials stocks were under pressure, after Goldman Sachs became the latest bank to cut its forecast for China’s economy, saying Beijing has limited options to boost stimulus. Goldman analysts cut their estimates for China’s gross domestic product (GDP) growth this year from 6 per cent, to 5.4 per cent. This naturally flowed into the China-sensitive bulk miners: BHP dropped 32 cents, or 0.7 per cent, to $46.10; Rio Tinto retreated $1.37, or 1.2 per cent, to $116.63; and Fortescue Metals Group gave up 18 cents, or 0.8 per cent, to $22.33.
In lithium, it was a tough day for some of the project developers: Lake Resources plunged 9.5 cents, or 20 per cent, to 38 cents after telling the market that its Argentina Lithium project would be delayed by six years, and would cost much more than originally expected. Fellow developer Liontown Resources fell 19 cents, or 6 per cent, to $2.96, and Core Lithium eased 4 cents, or 3.8 per cent, to $1.005.
Lithium producer Allkem softened 1 cent to $15.87; fellow producer Pilbara Minerals walked back 7 cents, or 1.4 per cent, to $4.82; IGO, which produces nickel as well as lithium, slipped 19 cents, or 1.3 per cent, to $14.90; but Mineral Resources, which mines iron ore and nickel, was on a different page, increasing 39 cents, or 0.5 per cent, to $73.39.
Copper major Sandfire Resources weakened 5 cents, or 0.8 per cent, to $6.23, while rare earths producer Lynas surrendered 11 cents, or 1.5 per cent, to $7.24.
In coal, Whitehaven Coal decreased 20 cents, or 2.9 per cent, to $6.74; New Hope Corporation lost 33 cents, or 5.8 per cent, to $5.40; Stanmore Resources fell 10 cents, or 3.6 per cent, to $2.66; and Yancoal Australia slid 9 cents, or 1.9 per cent, to $4.58; but Coronado Global Resources advanced 1.5 cents, or 1 per cent, to $1.505.
On the industrial screens, the big banks all advanced. Commonwealth Bank rose $1.16, or 1.2 per cent, to $100.51; Westpac gained 24 cents, or 1.2 per cent, to $21.15; National Australia Bank added 21 cents, or 0.8 per cent, to $26.06; and
ANZ improved 34 cents, or 1.5 per cent, to $23.62. The “mini major,” Bendigo Bank, added 3 cents, or 0.3 per cent, to $8.56; while Macquarie Group shed 37 cents, or 0.2 per cent, to $184.03.
Insurance stocks were also strong, with Suncorp lifting 26 cents, or 2 per cent, to $13.53; Insurance Australia Group improving6 cents, or 1.1 per cent, to $5.57; AUB Group rising 21 cents, or 0.8 per cent, to $27.49; NIB Holdings putting on 11 cents, or 1.3 per cent, to $8.80; and QBE Insurance advancing 16 cents, or 1 per cent, to $15.44.
Public holiday in US means quiet night
US markets were closed for the Juneteenth public holiday, which celebrates the end of slavery in the United States. Index futures based on the Dow Jones Industrial Average were down 93 points, or 0.3 per cent, while S&P 500 futures pulled back 0.2 per cent and Nasdaq Composite Index futures were also 0.2 per cent lower.
European markets declined, as investors remained jittery over the economic outlook. The benchmark Stoxx 600 index closed down 1 per cent, with almost all its sectors in negative territory.
The Australian dollar is buying 68.51 US cents this morning, down slightly on 68.54 cents at the ASX close on Monday.
