Home / Daily Market Update / Strongest month since November as ASX gains 1.8%

Strongest month since November as ASX gains 1.8%

Daily Market Update

ASX positive, Zip Co (ASX:Z1P) teams up with JB HiFi, building approvals heat up

The ASX200 (ASX:XJO) posted another positive day as the quarter comes to an end, finishing 0.8% higher.

Whilst a positive headline, the market fell heavily into the close, down around 1% in the last hour of trading. This resulted in another 1.8% gain for the month of March.

  • Every sector finished the day higher with industrials and property the highlights, up 2.2% and 1.3% behind Westfield (ASX:URW) and Atlas Arteria (ASX:ALX) which added 6.4% and 5.7% respectively.

    The key driver appears to be positive news coming from the Biden administration on infrastructure spend and the decision by the NSW Government not to impose a lockdown.

    The selloff in the platform sector appears to have come to an end, with Hub 24 (ASX:HUB) rallying 4.4% as investors look through the short-term issues with their interest margins.

    Zip Co (ASX:Z1P) has beaten bitter rival Afterpay (ASX:APT) to the punch, announcing a deal with JB Hi-Fi Ltd (ASX:JBH) which will ensure their BNPL platform is preferred at both branded and Good Guys stores; shares were broadly flat.

    Natural hazard update for Suncorp (ASX:SUN), builders battling, SG Fleet acquiring Lease Plan

    Insurer Suncorp Ltd (ASX:SUN) rallied 2.6% after quantifying the level of exposure to the natural disasters across NSW and Queensland, with the 7,600 claims seemingly less than the market expected.

    Management reiterated the exposure was around $250 million with significant reinsurance in place to reduce their risk for the remainder of the year. 

    Building approvals jumped 21.6% in February after a 19% slump in January, with the Home Builder program set to end shortly.

    Boral Ltd (ASX:BLD) and AdBri Ltd (ASX:ABC) were the biggest beneficiaries with home building products in short supply, they added 2.6% and 4.8% respectively.

    Vehicle and fleet management group SG Fleet (ASX:SGF) announced the acquisition of leading lease provider Lease Plan for $273 million as they seek to capitalise on their strong position, it will be funded by a fresh capital raising.

    US tech moves to an all-time high, rotation rally finishes the quarter strongly 

    The tech-focused Nasdaq finished the month and quarter on a strong footing, adding 1.5% to move to an all-time high, with Apple (NASDAQ:AAPL) up over 4% as positivity grows around their iCar prospects. 

    The Dow Jones ultimately finished 0.3% lower with energy stocks falling on the latest OPEC meeting and no announcement about supply expectations, whilst the major investment banks including Goldman Sachs (NYSE:GS) and JP Morgan (NYSE:JPM) retreated as signs the Archegos Capital debacle is coming to an end.

    Energy and oil stocks were by far the highlight jumping 30% in the first quarter of 2020, followed by the other main cyclical sectors being financials and industrials, which both benefit from higher bond rates, they were up 16% and 11% respectively.

    The US economy shows continued signs of recovery, adding 517k private sector jobs primarily in hospitality and leisure as long standing restrictions came to an end amid the successful vaccine rollout.

    While the UK and US sprint ahead in their vaccination rollouts, Europe is facing another deadly wave of cases amid the slow pace of the vaccine rollout.

    Industrials, property push ASX lower, RBA hikes again, Woolworths guides to higher sales

    The local market fell sharply on the back of an unexpected 0.25 per cent interest rate increase by the Reserve Bank of Australia. The news took the cash rate to 3.85 per cent, adding more pressure to household balance sheets and came despite most experts suggesting hikes had come to an end. The hardest hit…

    Drew Meredith | 3rd May 2023 | More
    ASX boosted by the energy sector, Origin upgrades outlook, Best & Less gets a bid

    The local sharemarket finished 0.4 per cent higher on Monday, buoyed by the energy and utilities sectors, which gained 1.3 and 1 per cent, despite the oil price continuing to fall. The sector was buoyed by an earnings upgrade from Origin Energy (ASX:ORG) which sent shares 0.5 per cent higher with AGL Energy (ASX:AGL) also…

    Drew Meredith | 2nd May 2023 | More
    Upbeat start to week – and month – likely for Aussie market

    After a strong session for global markets on Friday, Australian shares will take a positive lead into the new week – and month. The Australian benchmark index, the S&P/ASX 200, added 16.5 points, or 0.2 per cent, on Friday, to 7,309.2, but eased 53 points, or 0.7 per cent over the week. ASX futures trading…

    James Dunn | 1st May 2023 | More