SMALL CAP PORTFOLIO Let's be extra careful out there today! SUMMARY There is something rotten in the state of Denmark! Why CSL and RMD are on the nose. Is GLP-1 bigger than AI? The MGFO punt is paying off nicely. Forager showing a way forward. US CPI. More normal rates for longer. Sticky Fingers. Thoughts…
Turnover day – Not sure you take much interest in the technical signals today as the four-day trend comes to an end. Not a lot of technical signals anyway as the market bounce drops away. This is the ASX 200 – will the new trend end? Likely.
DMP is enjoying a purple patch, up 10% in the past five days. Citi upgraded the company on Wednesday to Buy, noting that an inflection point has been reached and improvement in key financial metrics are expected.
Wall Street finished in the red overnight after a US treasury auction sent bond yields higher, and CPI data came in hotter than expected. September monthly headline CPI came at 0.4%, higher than consensus of 0.3%, down from 0.6% in August. Headline YonY remained unchanged at 3.7%, although higher than expectations of 3.6%.
All Change – We are back on interest rate watch after the CPI number. Interest rate sensitive rally to end. US Results season starts tonight. Usually, a positive. Investment banks up first. DMP – Some broker upgrades. SGR – If you can swallow your ethics. BOQ after dropping 7% on results. Interesting moves in our industry.
Market surviving the CPI number overnight – all is not lost although the rally has certainly started to doubt itself.
BOQ released full year results on Wednesday and was received poorly by the market to say the least. Down 7% (a lot for a bank) on the news, followed by an interesting bounce back yesterday, up 4%.
ASX 200 performs better than expected, falling only 40 points to 7051 (-0.6%). Volumes seemed light, and some book squaring ahead of US results helped sentiment. Banks eased back, with CBA down 0.6% and the Big Bank Basket down to $177.48 (-0.7%). Insurers slightly better IAG up 0.2%. Fund managers eased back, and REITs fell back as 10-year yields…
CSL fell 6.3% today continuing its nasty downtrend, as the GLP-1 (obesity drugs) juggernaut continues to smash through the healthcare sector. It has already destroyed ResMed (RMD) and yesterday their five year study into the GLP-1 efficacy in treating chronic kidney disease and Type 2 diabetes was halted early because the results were so good. It is…
ASX 200 limped to a 3-point gain to 7091 (+0.04%) ahead of US CPI. Six sessions in a row. Just. CSL was the biggest drag on the index as positive drug trials in the US marred the outlook for medical companies. The stock fell 6.3%, RMD down 5.3% on the same effect. Banks once again…
