👀 Copy Legendary Investors' Portfolios in One ClickCopy For Free

FIVE at FIVE AU: ASX higher; are traders buying the dip?

Published 12/08/2024, 04:05 pm
Updated 12/08/2024, 04:30 pm
© Reuters.  FIVE at FIVE AU: ASX higher; are traders buying the dip?
AXJO
-
AXSO
-
JBFI
-

The ASX is higher today with the S&P/ASX200 gaining 36.90 points or 0.47% to 7,814.60. The index has lost 1.68% for the last five days but sits 4.16% below its 52-week high.

Top-performing stocks in this index are JB Hi-Fi Ltd and TabCorp Holdings Ltd, up 7.90% and 7.08% respectively.

Sectors were mostly higher today. Information Technology was among the best performed with a gain of 1.65%. The worst performed was Materials which lost 0.43%.

Over on the small caps index, the S&P/ASX Small Ordinaries (XSO) gained 0.58% today to 2,942.70. Over the past five days, the index is 1.89% higher.

JB Hi-Fi delivers solid results

Josh Gilbert, market analyst at eToro had the following to say about JB’s results.

"JB Hi-Fi delivered a solid full-year result this morning, with net income beating estimates and the announcement of a special full-franked dividend.

“In what has been a tough period for retailers, there was undoubtedly a grey cloud looming over JB Hi-Fi’s results today but these figures show resilience and the market will be duly impressed.

“These results demonstrate how we continue to see consumers saying one thing and doing another. Consumer confidence is highly pessimistic but JB-HiFi’s July update showed sales have grown across all areas of the business year-over-year.

"This strong indicator of increasing consumer spending comes at a time when interest rates are sitting at their highest level in a decade.

“The tax cuts implemented at the start of the financial year could be one of the key drivers of sales through July, ultimately offering consumers some ‘discretionary’ cash that they wouldn’t have had this time a year ago, which has given them the freedom to splurge on new electronics.

“With shares climbing 40% in the last year, shareholders will be more than pleased and today's results will emphasise exactly why shares have been on a tear. JB has done it again; it’s a fantastic business, and although the retailer's time in the sun won’t last forever, this is a great result at a time when many had expected a lot worse."

Buying the dip

Rob Talevski, CEO, Webull Securities Australia, suggests that the COVID sell-off event taught traders to find opportunity in volatility. He notes that traders on the platform are buying the dip in the form of various ETFs, rather than taking risks on individual stocks.

“We’ve seen more buying than selling among Australian traders since volatility spiked last Friday, which has presented itself chiefly in increased ETF buying volumes.

"Daily US ETF volumes from Australian traders on the Webull platform jumped by 83% as traders bought the US dip and Australian ETF volumes jumped 59% versus the average volume of the previous week.

“Speculation of US rate cuts has also breathed life into bond ETFs, which have trended higher as expectations of lower US yields increase.

"This buying strength tells us that investors have cash ready to meet the opportunities presented as markets pull back, while a 260% increase in US options volumes and a mix of bullish and bearish Nasdaq ETF trades tells us that traders are using these instruments to manage risk.

“While the latest sell-off has no doubt negatively impacted most investor portfolios locally, the short, sharp shocks that we’ve witnessed since the last deep COVID sell-off have taught traders to find opportunity in volatility and, rather than taking risks on individual stocks, we’re seeing more ETFs enter our top-10 traded, including the bullish and bearish US semiconductor ETFs, which include the likes of Nvidia, AMD (NASDAQ:AMD) and Qualcomm (NASDAQ:QCOM).”

Five at five

Sarytogan Graphite PFS envisages low-cost project with "exceptional" returns

The highly anticipated pre-feasibility study (PFS) of Sarytogan Graphite Ltd (ASX:SGA) for the development of its giant, high-grade Sarytogan Graphite Project, sees the project “take its place as a very serious contender to play an important role in meeting the world’s energy storage needs”.

Read more

Ilala Metals opens $5 million IPO to drive uranium and copper exploration in Botswana

Ilala Metals Ltd is set to become the newest copper and uranium explorer on the ASX, having opened an initial public offering (IPO) to raise $5 million in additional funding, with capacity for up to $8 million should the IPO be oversubscribed.

Read more

American Rare Earths reveals new strategy to accelerate Halleck Creek development

American Rare Earths Ltd (ASX:ARR, OTCQB:ARRNF) will take a new path to accelerate the development of its Halleck Creek Project in Wyoming, USA — one of the largest rare earth deposits in North America — creating a dedicated subsidiary for the project.

Read more

Tryptamine Therapeutics achieves full patient response in TRP-8802 Phase 2a fibromyalgia trial

Tryptamine Therapeutics Ltd (ASX:TYP, OTC:TYPTF) has fielded strong results from a Phase 2a fibromyalgia trial testing oral psilocybin formulation TRP-8802 in conjunction with psychotherapy, achieving improvements in fibromyalgia pain severity, sleep, pain interference and at least three other endpoints in all five patients.

Read more

Iondrive will collaborate to commercialise battery recycling technology in Europe

Iondrive Ltd (ASX:ION) has inked a collaboration agreement with German-based PEM and PEM Motion, leaders in battery technology and recycling, aimed at commercialising battery recycling technology in Europe.

Read more

On your six

Tech Bytes: Trump Presidential campaign hacked; research dossier on VP pick JD Vance leaked

In an ironic echo of the 2016 US Presidential campaign, Donald Trump’s internal campaign communications have been leaked in a hack the campaign says was masterminded by Iranian operatives.

Read more

The one to watch

Sarytogan Graphite PFS highlights strong financial potential

Sarytogan Graphite Ltd (ASX:SGA) managing director Sean Gregory sits down with Proactive’s Jonathan Jackson to discuss the results of its pre-feasibility study (PFS) for the Sarytogan Graphite Project in Central Kazakhstan.

Read more

Read more on Proactive Investors AU

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.