It was another strong finish for the ASX 200 on Friday, adding 0.4% and finishing the week up 2.6% on the back of rally in both the healthcare and communications sectors. CSL Ltd (ASX:CSL), up 2.7%, and Telstra Corporation Ltd (ASX:TLS), 4.0%, were the standouts. The market continues to improve despite the worsening COVID-19 case numbers in Victoria and the US which seem likely to result in a second round of shutdown measures.
The ASX 200 (ASX:XJO) followed a strong global lead pushing 1.7% higher, with all sectors benefiting. The most stunning performance has come from Afterpay Ltd (ASX:APT) which after hitting another all-time high has become the 19th most valuable company at $18 billion; this despite losing $32 million last year.
Most global markets started the financial year on a positive note, with the ASX 200 (ASX:XJO) adding 0.6% despite reports that just 30% of jobs lost during the COVID-19 crisis have been replaced.
Sharemarkets around the world continued to rally overnight, with the S&P 500 up 1.5% marking the strongest quarter since 1998. The Eurostoxx 50 was comparatively weaker adding just 0.06% whilst the Nasdaq rallied another 1.9% as investors ignored the existential threat to Facebook Inc (NASDAQ:FB).
The ASX 200 (ASX:XJO) followed a negative lead from Wall Street, falling 1.5%, albeit on lower volumes amid the beginning of school holidays. The market traded as low as 2.2% throughout the day, with chronic underperformers in the property sector like Unibail-Rodamco-Westfield (ASX:URW) seeing significant tax loss selling as 30 June nears.
As a change of pace, I’ve taken a look at the outlook for Telstra both during and post COVID-19. The share price fell from a high of around $4.0 in February to around $3.04 in mid-March and still sits around $3.15 today. That’s a 20% fall despite the company being significantly sheltered from the events…
Global sharemarkets will begin the week on a negative footing as it appears the second wave is upon us. Several of the US largest southern states contributed to an all-time high in cases, whilst similar outbreaks in Germany and to a less extent in Melbourne, are making investors nervous once again.
It was another bumpy day for investors on Thursday, with the ASX 200 (ASX:XJO) following global markets lower and falling by -2.5% as global infection rates and the threat of the re-imposition of restrictions increased.
The ASX 200 (ASX:XJO) finished marginally higher again on Wednesday, adding 0.2%, driven primarily by technology names including Afterpay Ltd (ASX:APT) and Xero Ltd (ASX:XRO) after both reached all-time highs. These gains will be reversed today as US markets tumbled heavily, down between 2% and 3%, as the resurgence in COVID-19 cases continued to grow; this must be investors worst nightmare.
As the financial year comes to a close, it’s worth reflecting on what we have just experienced; not just in investment terms, but our health and community. COVID-19 will have long-lasting impacts on our lives and has resulted in one of the most unique investment environments in history. Markets experienced one of the fastest collapses…
