ASX – August Volumes

Posted on | by Leon Hinde

ASX is under Algo Engine buy conditions.

August cash equity volumes and average daily futures contract volumes were well down on the same time last year, -13% and -19% respectively.

FY21 earnings are likely to be flat at best and with the stock on a forward yield of 2.8%, we see it as “fully valued”. Owning the stock and selling an at the money covered call option is generating 8% cash flow.

We see value in buying ASX on any market weakness.

ASX – Trading Volumes

Posted on | by Leon Hinde

ASX is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

July trading volumes show cash market: 32.5m, (lower than the 12-month average of 38.4m) and total value traded in July rose to $140.5bn, (July 2019’s $126.8bn).

Derivatives total of 8.6m contracts, down 22% on a year ago and much lower than the past 12-month average.

Volumes are expected to remain below the elevated levels of the past few months.

ASX is a quality business and we look to add to the position at lower price levels.

ASX – Accumulate

Posted on | by Leon Hinde

ASX is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

Accumulate within the $64 – $68 price range.

NOTE: It was reported on mainstream media that NYSE volume is up over 50% in March, (based on the same time last year).

It seems reasonable to assume that the ASX will be benefiting from a similar pick up in order flows, across both equities and derivatives.