The Monday Report – 26 February 2024

Daily Market Reports | Feb 26 2024

By Greg Peel

The Nvidia Effect

Australia does not exactly have a booming tech industry the likes of the US but on Friday, after Nvidia had largely endorsed AI hype overnight, we did our best. On tenuous connections, Brainchip ((BRN)) rose 14.0%, Appen ((APX)) 13.0% and Weebit Nano ((WBT)), 7.7%. All of those stocks are well shorted.

In another US connection, Block ((SQ2)) rallied 16.5% after reporting in the US aftermarket – a performance which was repeated in New York on Friday night.

There was also a homegrown winner in the form of Aussie Broadband ((ABB)), which jumped 18.6% on its earnings result. Seems like all those annoying ads have paid off.

The tech sector was the best performer on Friday in rising 1.5%, but does not have a lot of ASX200 impact. Not all the stocks mentioned above are in the ASX200.

Nvidia had effectively lifted all of Wall Street and that positive sentiment has carried over to our market, but we still needed net positive earnings results to back it up. One standout on Friday was Lovisa Holdings ((LOV)), up 6.8%.

Consumer discretionary had a good day all round, with Jumbo Interactive ((JIN)) jumping 9.0% on its result, events company EVT Ltd ((EVT)) following on with 4.7% from its earlier result, and Tabcorp ((TAH)) bouncing back 6.9% having initially been trounced on its result.

Discretionary rose 1.5%.

Those two sectors were the two main players on the day, with the heavy lifting provided by a 0.7% gain for the banks.

Materials had a flat session, balanced out gains in the iron ore miners and falls in gold stocks. Newmont Corp ((NEM)) fared worst on its result (-8.1%), while Regis Resources ((RRL)) followed on from its Thursday result (-4.8%).

Also following on from its Thursday result plus cap raising was Lifestyle Communities ((LIC)), which lost -13.0%. The Aussie ten-year yield rose 4 points to 4.19%, and real estate fell -0.3%.

The index closed within 60 points of its all time high on Friday and the result season rolls on this week through to Thursday, with still plenty of reports to come.

Wall Street was quiet on Friday night and our futures were up 4 points on Saturday morning.


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