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.
Local market down ahead of Fed Chair’s chat with Congress
The local share market ended its seven-day winning streak on Wednesday, with investors and traders wary ahead of Federal Reserve chairman Jerome Powell’s testimony to the US Congress later that night.
The benchmark S&P/ASX 200 index eased 42.9 points, or 0.6 per cent, to 7,314.9, while the broader All Ordinaries walked back 42.9 points, also 0.6 per cent, to 7,505.6.
Among the big banks, Commonwealth Bank eked out a 6-cent gain, to $101.68; and National Australia Bank closed 3 cents higher at $26.53; but ANZ was down 12 cents, or 0.5 per cent, to $23.68; and Westpac closed 21 cents, or 1 per cent, weaker at $21.22. Global investment bank and wealth manager Macquarie Group slid $4.73, or 2.6 per cent, to $180.47; and “mini-major” Bendigo Bank advanced 6 cents, or 0.7 per cent, to $8.72.
Healthcare heavyweight CSL moved 12 cents higher, to $283.62, while Australia’s second-largest biotech, Telix Pharmaceuticals surged 67 cents, or 5.8 per cent, to a record high of $12.28 as it prepared to present to investors in New York about what comes next after the success of its prostate cancer imaging agent, Illucix.
Elsewhere in industrials, regional airline REX plunged 14 cents, or 12 per cent, to $1.06 after stating that it will not make a profit this financial year after all: instead, the company projects a $35 million loss. A shortage of pilots and engineers has forced Regional Express to cut back on flights this year.
Travel company Flight Centre was the biggest loser of the S&P/ASX200 constituents, sliding $1.47, or 6.9 per cent, to $19.90 after forecasting full-year earnings of $270 million-$290 million – a boost to its February guidance, but evidently disappointing investors who were hoping for more.
Mixed day for resources
Of the bulk miners, BHP was down 50 cents, or 1.1 per cent, to $46.22; Rio Tinto shed $1.61, or 1.4 per cent, to $115.79; and Fortescue Metals lost 38 cents, or 1.72 per cent, to $22.02.
In gold, heavyweight Newcrest Mining shed 33 cents, or 1.2 per cent, to $26.40; Evolution Mining was down 8 cents, or 2.3 per cent, to $3.35; Northern Star dropped 30 cents, or 2.2 per cent, to $13.04; Gold Road Resources gave up 3.5 cents, or 2 per cent, to $1.745; Bellevue Gold also retreated 3.5 cents, in its case 2.8 per cent, to $1.235; and St Barbara lost 2 cents, or 3.8 per cent, to 50.5 cents.
On planet lithium, producer Allkem lifted 21 cents; fellow producer Pilbara Minerals gained 11 cents, or 2.2 per cent, to $5.05; IGO, which mines nickel as well as lithium, dropped 14 cents, or 0.9 per cent, to $15.09; and Mineral Resources, which produces iron ore and lithium, retreated 81 cents, or 1.1 per cent, to $73.25.
Among the lithium producers, Liontown Resources was down 5 cents, or 1.7 per cent, to $2.91; Lake Resources staged a partial recovery, up 1.5 cents, and Core Lithium walked back 1.5 cents, or 1.5 per cent, to 97.5 cents;.
In the world of coal, Stanmore Resources leapt 12 cents, or 4.6 per cent, to $2.75; Whitehaven Coal edged ahead by one cent to $6.79; New Hope Corporation retreated 2 cents to $5.37; Yancoal Australia eased 3 cents, or 0.7 per cent, to $4.51; and Coronado Global Resources weakened 2.5 cents, or 1.6 per cent, to $1.52.
In energy, Woodside Energy lost 67 cents, or 1.9 per cent, to $35.64; Santos gave up 7 cents, or 0.9 per cent, to $7.67; and Brazilian-based producer Karoon Energy lost 4 cents, or 1.9 per cent, to $2.04.
Fed chair disappoints rates doves
In the US, the major indices posted their third straight day of losses as they mulled Federal Reserve Chair Jerome Powell’s latest comments on inflation. Powell affirmed that more interest rate increases are likely ahead as inflation is “well above” where it should be: the process of getting inflation back down to 2 per cent has “a long way to go,” he said.
The stock market turned tail on that, with the blue-chip Dow Jones Industrial Average down 102.35 points, or 0.3 per cent, to 33,951.52; the broader S&P 500 losing 23 points, or 0.5 per cent, to 4,365.69; and the tech-heavy Nasdaq Composite index closing 165.1 points, or 1.2 per cent, lower at 13,502.20.
On the bond market the US 10-year bond yield was slightly (not even one basis point) stronger at 3.725 per cent, while the 2-year yield gained 1.3 basis points to 4.713 per cent.
Gold is down US$3.98, or 0.2 per cent, to US$1,933.32 an ounce, while the global benchmark Brent crude oil grade rose US$1.22, or 1.6 per cent, to US$77.12 a barrel, and US West Texas Intermediate crude eased three cents, to US$72.50 a barrel.
The Australian dollar is buying 67.99 US cents this morning, up from 67.76 US cents at the local ASX close on Wednesday.
