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.
Major Banks and Iron Ore Miners bolster the S&P/ASX200 on Tuesday.
The S&P/ASX 200 finished the day higher, up 0.5 percent after initially falling by 0.2 percent earlier in the trading session. The broader All Ordinaries also rose by 0.4 percent. On Monday, the Australian stock market rebounded from earlier losses, breaking a four-day losing streak. This recovery was attributed in part to a strong performance by iron ore mining companies and the four major banks. BHP, Rio Tinto, and Fortescue Metals all experienced gains of 1.1 percent, 1.1 percent, and 1.2 percent, respectively. Financial stocks also contributed to the ASX 200’s gains, with Commonwealth Bank, ANZ, NAB, and Westpac all posting gains of 1.2 percent, 1.4 percent, 1.4 percent, and 1.8 percent. Market sentiment received a boost from a rebound in the Australian dollar, which rose by 0.7 percent to US64.2¢ after hitting a 10-month low the previous week amid concerns about the Chinese economy.
Healthcare sinks as CSL trades ex-dividend.
Healthcare stocks were the worst-performing sector on the ASX 200, ending the day down 0.7 percent, with CSL, a sector heavyweight, trading ex-dividend. Graphite producer, Syrah Resources saw a 7 percent increase in its stock price after securing a $150 million ($234.6 million) loan for its Balama operation in Mozambique. Bendigo and Adelaide Bank also experienced a 2.7 percent increase in its stock price after appointing David Foster, a current board member and former Suncorp CEO, as its next chairman. Conversely, scrap metal recycler Sims witnessed a 10.6 percent drop in its stock price after forecasting that earnings would break even in the first quarter of FY24 due to ongoing issues with scrap metal prices and demand. The ASX-listed shares of Block, the company that owns Afterpay, fell by another 3.7 percent, extending a decline of more than 7 percent since reports of outages in its payments app in the US surfaced. Megaport’s stock price also sank by 8.6 percent following news that the company’s director and CEO of AOptix Technologies, Michael Klayko, had sold his stake for around $300,000. Despite this, Megaport shares had seen a rally since the beginning of the year, following a challenging 2022. Looking ahead, the market anticipates the release of Westpac’s consumer sentiment report and NAB’s business confidence survey on Tuesday.
Morgan Stanley upgrades Tesla.
The S&P 500 rose by 0.7%, the Dow closed 0.3% higher, and the Nasdaq climbed by 1.1%. The consumer-discretionary sector within the S&P 500 which includes electric vehicle manufacturer Tesla, emerged as the top performer among the index’s 11 sectors, experiencing a notable increase of approximately 2.8%. Tesla’s stock received a significant fundamental boost as Morgan Stanley upgraded it, and investors back the sentiment surrounding a sophisticated supercomputing framework and the potential of a $10 trillion addressable market. Apple’s shares lifted 0.8%, following a 6% decline the previous week due to concerns about the Chinese government’s reported ban on iPhones for government employees and worries that such restrictions could expand. However, the situation is now looking more optimistic, as investors are turning their attention to the imminent launch of the latest iPhone and beginning to move past their concerns regarding China. This shift in focus provides a sense of relief for investors because if Apple’s stock can stabilize or reverse its recent declines, it bodes well for the overall market. In economic news, investors are eagerly anticipating upcoming data releases on inflation and retail sales later in the week, as these figures are expected to provide valuable insights into the Federal Reserve’s future interest-rate policy.
