The Monday Report (On Tuesday) – 06 April 2021

Daily Market Reports | Apr 06 2021

By Greg Peel

Thursday

The ASX200 wobbled and wavered from the opening on Thursday, toying with the 6800 level, before finally setting upon an upward trend. Failure then looked inevitable in the early afternoon before a late kicker had the index closing on its highs.

The standout percentage move was posted by technology (+2.5%) which, after having ignored the Nasdaq in recent sessions, hitched its wagon firmly back on.

Materials was next best (+1.5%) in the wake of the official announcement of Biden’s infrastructure package, which came after the bell on Wall Street, albeit some details were already known. Mention the words “infrastructure spending” and by rights it should be good news for commodity producers.

While the big miners were positive on the day, it were the lithium miners that stole the show outside the index, thanks to Biden’s big EV push.

And a 6.7% jump for Boral ((BLD)) on the day also drove the sector higher. Boral announced the sale of its 50% stake in a German multinational.

Utilities performed well (+0.8%) and despite brokers querying whether a spun-off legacy coal-fired generation business out of AGL Energy ((AGL)) will draw any buyers, that stock still managed to close up 0.7%.

Consumer discretionary (+0.5%) responded to the news Easter is on in Queensland, despite more falls in travel related stocks. Aside from it no doubt being too late for many holiday plans, Webjet ((WB)) spoiled the party by announcing another capital raising, in the form of a convertible note. It fell -5.4% to be the worst index performer on the day.

The sector brushed off the weak February retail sales number (-0.8%) given (a) it had been pre-released a couple of weeks ago and (b) it reflected snap lockdowns in the period.

The banks also enjoyed the news from the north, up 0.4% despite Macquarie Group ((MQG)) getting a smack on the hand from APRA for breaching liquidity reporting standards. The punishment is an extra $500m of liquidity required to be held, but the stock only fell -0.5%.

There was not much going on in other sectors.


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