The Monday Report – 29 November 2021

Daily Market Reports | Nov 29 2021

By Greg Peel

Omigod

Not much one can say about Friday’s session on the ASX that isn’t obvious. Not much one can say about omicron either as for now it’s a case of “we just don’t” know and it will take a few weeks to find out.

That puts travel bans back in the spotlight, and no surprise the biggest individual hits taken in the market on Friday were the travel stocks, led out by Flight Centre ((FLT)) on -7.5% and Corporate Travel Management ((CTD)) on -5.8%, with Webjet ((WEB)) falling -5.1% and Qantas Airways ((QAN)) -5.5%.

One might expect Sydney Airport ((SYD)) to join them but it’s subject to takeover so it stayed put.

The hardest hit sector by a margin was energy (-4.6%) and sure enough oil prices fell -12% on Friday night.

Base metal and iron ore prices were also clobbered, but materials managed only a -1.7% fall. Only 14 of the ASX200 stocks closed in the green on Friday and the top five winners were all gold miners.

The gold price was only up by a tick on Friday night.

The biggest points contributors were, of course, the banks (-2.0%), with the Aussie ten-year yield falling -13 basis points to 1.73%.

One might have expected healthcare to be spared to some extent but it fell -1.5%. CSL ((CSL)) might be able to manufacture vaccines but it can’t collect blood in lockdowns. It fell -1.8%. Sonic Healthcare ((SHL)), which provides testing, was one of the 14 winners (just), while Fisher & Paykel Healthcare ((FPH)) makes ventilators and it fell -3.5%.

There was clear evidence of cyclicals being much harder hit than defensives, with property, utilities and telcos falling less than -1% and consumer staples “winning “ the session with -0.6%.

There goes the toilet paper again.

The question on everyone’s minds of course is: are we heading back into lockdowns, just in time for Christmas?

The other question is why did WHO break the Greek alphabet sequence and jump straight to “o” – omicron, when “e” – epsilon – was logically next?

These and other questions cannot be immediately answered.

We might have hoped the -1.7% fall for the ASX200 would be enough to consider Wall Street’s -2.3% fall simply as follow-on for the same reason, but no, our futures were down another -104 points on Saturday morning.


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