Australian (ASX) Stock Market Forum

Buying the Dip on ASX

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frugal.rock said:
ASX200 up 2.15% this week beating the XSO up 1.9%, and this portfolio only gained 0.51%.
An up week is an up week.
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So things went the other way last week. The usual conniptions, but at least the market only 'fell' and all was not 'lost'.
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frugal.rock said:
My only comment on the markets is,...
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Um. What will tomorrow bring?
 

Sectors to Watch: The Bounce Continues​

The ASX is set for another positive open after a strong lead from Wall Street. A few sectors to watch include:

  • Iron ore and miners: "China is considering raising its budget deficit for 2023 as the government prepares to unleash a new round of stimulus to help the economy meet the official growth target, according to people familiar with the matter," Bloomberg reports. BHP and Rio Tinto ADRs rose 1.5% and 2.0% respectively overnight while the Global X Copper Miners ETF finished 1.87% higher.
  • Solar: Not so much to do with our market (or rather there aren't really any ASX-listed solar plays) but still interesting to note that the Invesco Solar ETF rallied 5.67% overnight on the highest volume since September 2022. The ETF is down around 30% year-to-date.

ResMed: Obesity Drugs​

ResMed (ASX: RMD) shares are around down around 30% since August amid growing concerns about how obesity drugs may disrupt the sleep apnea market.

The latest note from Jarden notes that "following our discussions with key US sleep stakeholders, there is currently no sign of the impact of GLP-1 drugs on sleep lab referrals, diagnosis rates, CPAP setups and mask replacement." But there is an expectation that "there will be an impact due to the staggering increase in awareness and demand for these drugs and the role of weight loss in reducing OSA severity."

The broker cut its share price target by 16% to $30.33 but retained an Overweight rating.

Resmed_Inc__ASX_RMD__Share_Price_-_Market_Index.png

Resmed 12-month price chart (Source: Market Index)​

There's an expectation that weight loss drugs like Ozempic will pose a threat to several industries spanning from fast food restaurants to cigarette makers. Walmart's CEO John Furner said its already seeing an impact of the drugs on food demand, stating "we definitely do see a slight change compared to the total population, we do see a slight pullback in overall basket."
 

US Sectors​

Thu 12 Oct 23, 8:40am (AEDT)
SectorChg %
Real Estate+2.01%
Utilities+1.63%
Communication Services+1.07%
Information Technology+1.01%
Industrials+0.62%
Consumer Discretionary+0.48%
SectorChg %
Materials+0.23%
Financials+0.11%
Health Care-0.43%
Consumer Staples-0.64%
Energy-1.35%
 
Dona Ferentes said:
deteriorating global security situation notwithstanding, the ASX has had a good 5 day run. Today it may be out of puff, futures are looking flat.

(future's looking flat, too)
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For trading purposes, a general rule.....follow the sectors, but bear in mind which sector had a head start yesterday too, so may not follow on today. Picking individual stocks within a green sector can work out, Dona, but not always, so be selective. I know you are different to how I operate.....good luck.

The watchlist.....which stocks have transacted this morning? Go to course of sales and there will be a reference to what is what.....https://www.asxonline.com/content/dam/asxonline/public/documents/asx-trade-refresh-manuals/asx-trade-markets-instrument-groups-and-trade-condition-codes.pdf
 
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