Live markets, Monday, November 8, 2021

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The benchmark S & P / ASX 200 struggled to do well on Monday despite strong advances from Wall Street, where the benchmark S & P500 has risen in 16 of the last 18 sessions.

ASX was in negative territory for most of Monday before closing down 0.1%, or 4.7 points, at 7,452.2 points. There was little economic or corporate news to boost momentum, but gold stocks were higher and travel stocks soared after Sydney Airport accepted a buyout offer of 32 billion dollars of the consortium.

Wall Street’s S & P500 has risen an average of 68.5 points each week for the past five weeks, and is up 25% since the start of this year.

ASX finished slightly lower despite Wall St. Credit:Louis Douvis

“The market is really getting a little scary, getting a little vertical,” said Gary Glover of Novus Capital.

“The speed of this market is the thing that concerns me the most… we haven’t seen a decent correction in a long time. We should see five to ten percent of corrections more regularly than what we are seeing. ”

In September, the S & P500 fell 5.9%, but then jumped 9.8% in just five weeks.

Mr Glover said the speed of the gains reminded him of the big gains leading up to the corrections in Japan’s Nikkei index in 1989, the dot-com bubble of 2000 and the Shanghai market in 2015.

“Normally vertical markets don’t end well. Be careful with the growth part of your portfolio, ”he said.
Meanwhile, the ASX peaked in mid-August at 7628.9 points and was still down 2.4%.

This is due to the heavy weighting of iron ore miners which has declined over the past three months due to falling commodity prices.

On Monday, BHP gained 0.8% to $ 36.38, nearly $ 20 below its August high. Likewise, Fortescue, which reached $ 26.30 at the end of July, closed at $ 14.33, up 0.4% for the day. Rio Tinto gained 0.4% to $ 89.15. Gold miners also advanced with Northern Star up 3.3 percent and St Barbara up 5.2 percent.

Sydney Airport gained 2.8% to $ 8.46, a 22-month high. Other travel shares followed the trip with Qantas up 4.1% to $ 5.85, Flight Center gained 5.7 percent and Webjet gained 4.8 percent.

The big banks were split with ANZ down 1.6% and Macquarie down 0.8% after being ex-dividend. Westpac gained 1.3 percent, Commonwealth Bank gained 0.4 percent, and NAB gained 0.6 percent.

Oil producers outperformed as crude prices continued to rise. Woodside gained 3 percent, Santos rose 3.1 percent and Beach Energy gained 4.3 percent.

Tech stocks fell as Tesla founder Elon Musk vowed to comply with a Twitter poll urging him to sell $ 21 billion in stocks. Futures on the Nasdaq were down 0.4% by late afternoon. ASX-listed Xero was down 4.9%, Afterpay 0.6% and NextDC down 2.3%.

Biotech PolyNovo fell 9.7% to $ 1.59 after its chief executive left the board, citing a growing division over its management style.


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