ASX set to take a breather


Published 12-MAY-2020 09:36 A.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

The S&P/ASX 200 finished up 1.3% or 70 points to close at 5461 points on Monday.

One of the hardest hit stocks in Webjet (ASX:WEB) made the strongest recovery yesterday, gaining approximately 20% to close at $3.50.

With mixed to negative leads coming from overseas last night some profit-taking would surprise.

The ASX SPI200 index is pointing in this direction, down 19 points to 5459 points.

24 hours

Asian markets generally mirrored the ASX yesterday with the Nikkei 225 up 211 points or more than 1% to close at 20,390 points.

The Hang Seng put in a strong performance gaining 372 points or 1.5%, closing at 24,602 points.

However, it was a different story overnight with the FTSE 100 just managing a three point gain to close at 5939 points after being in the red for most of the session.

The mood was much more negative in mainland Europe with the DAX falling 79 points or 0.7% to 10,825 points and the CAC 40 slumping 1.3% to close at 4490 points.

It took the Dow most of the day to work its way into positive territory, but this was given up in the last hour as it shed more than 100 points to close 0.4% lower at 24,222 points.

The S&P 500 was relatively flat, closing at 2930 points.

Similar to the challenges Australia will face, it isn’t just a matter of opening up for business there will be a significant hangover effect on consumers and businesses, and it appears that this reality is starting to hit home in the US.

The negative sentiment failed to rub off on the NASDAQ as it built on last week’s gain of 6%.

The index rallied 71 points or 0.8% to close at 9192 points, and it is hard to believe that it is only about 6.5% shy of the all-time record high of 9838 points struck less than three months ago.

It’s as though coronavirus never existed which is somewhat disturbing given the long term impact it will have on many sectors of the economy.

Gold had an up-and-down night but finished spot on the psychological mark of US$1700 per ounce.

Brent oil spiked halfway through the session to hit US$31.47 per barrel, but it gave up all of those gains to finish just above the US$30 per barrel.

There was little movement in the iron ore price, and after a strong run last week it is hovering in the vicinity of US$88.60 per tonne.

Zinc was one of the more interesting metals to watch as it continued its strong run after good gains over the last few weeks, and its close just above US$0.90 per pound was a 60 day high.

Lead notched up its fifth consecutive day of gains, and it is now trading around levels not seen since mid-April.

There was little movement in the Australian dollar, and it is currently fetching just below US$0.65.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.


Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free