Monday Report – November 29, 2021

Daily market reports | November 29, 2021

By Greg Peel

Omidieu

Not much to say about Friday’s ASX session that isn’t obvious. There is not much that can be said about omicron either because right now it is “we just don’t know” and it will take a few weeks to find out.

This puts travel bans back in the spotlight, and unsurprisingly, the biggest individual hits on the market on Friday were travel documents, led by Flight Center ((FLT)) on -7.5% and Corporate Travel Management. ((CTD)) down -5.8%, with Webjet ((WEB)) down -5.1% and Qantas Airways ((QAN)) down -5.5%.

One would expect Sydney Airport ((SYD)) to join them, but it is subject to a takeover, so it stayed put.

The hardest hit sector was energy (-4.6%) and oil prices of course fell -12% on Friday night.

Base metals and iron ore prices also fell, but materials only fell -1.7%. Only 14 of the ASX200 shares closed in the green on Friday and the top five winners were all gold miners.

The price of gold only rose one tick on Friday night.

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

One would have expected health care to be spared to some extent, but it fell -1.5%. CSL ((CSL)) might be able to manufacture vaccines, but it cannot collect blood during times of lockdown. It fell by -1.8%. Sonic Healthcare ((SHL)), which provides testing, was one of 14 winners (only) while Fisher & Paykel Healthcare ((FPH)) makes ventilators and it fell -3.5%.

There was clear evidence that cyclics were hit much harder than defensives, with real estate, utilities and telecoms down less than -1% and consumer staples “winning” the session with -0.6%.

Here is the toilet paper.

The question everyone is concerned about is of course: are we going back to containment, just in time for Christmas?

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

These and other questions cannot be answered immediately.

We would have hoped that the -1.7% drop in ASX200 would be enough to see Wall Street’s -2.3% drop simply as a follow-up for the same reason, but no, our futures contracts were in. drop of -104 additional points on Saturday morning.


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Valerie J. Wallis