Live Markets, Monday May 24, 2021
The ASX200 struggled to head on Monday, as gains from major banks were offset by a materials sector following lower iron ore prices.
The market fluctuated between losses and narrow gains throughout the session before closing at 15.6 points, or 0.2%, higher at 7045.9.
There were gains for the Big Four banks, CSL, gold miners and food retailers, but this was offset by a loss of 1.8% for BHP, a drop of 2.2% for Rio. Tinto and a 4.2% drop for Fortescue Metals.
Burman Invest chief investment officer Julia Lee said that outside of mining, ASX has performed well given weak tracks on Wall Street.
She noted that some defensive sectors like consumer staples and utilities were weaker, but said this could happen when investors wanted to sell stable stocks to add more risk to their portfolios.
“The only thing that is really holding our market back at the moment is the miners,” Ms. Lee said.
“Iron ore continues to decline in Asian trade. China has said it will be quite strict in implementing some of its commodity targets. We know they are trying to diversify their supplies outside of Australia and that has impacted some of the speculative money. “”
Iron ore has traded at unexpected record highs in recent weeks, hitting US $ 223 per tonne last week, but has fallen in the past three sessions to US $ 204.50 per tonne.
“I think the banks are currently in the upgrade cycle. The risk is that you will see some regulatory controls entering a fairly hot housing market, ”Ms. Lee said.
The Commonwealth Bank gained 0.7% to close at a new high of $ 98.76, with the $ 100 barrier signaling. Westpac gained 1.3% to $ 25.98, NAB rose 0.7% and ANZ Bank gained 0.6%.
CSL gained 1.8 percent to a five-month closing high of $ 289.27. Wesfarmers gained 0.9 percent to $ 54.73, and Domino’s Pizza gained 4.6 percent to a three-month high of $ 108.70 after an analyst upgrade based on expectations the fast food company could become popular in Italy and other markets.
Gold miners were also stronger with Newcrest rising 2.7% to $ 28.52 after the safe haven traded at five-month highs of US $ 1,883.51 an ounce.
ABC Bullion global chief executive Nick Frappell said he expected gold prices to rise in the 1900s as reflation optimism was beaten by weaker jobs than expected and retail growth in the United States.