The ASX 200 benchmark index bounced back from yesterday’s lows as the markets looked to have shrugged off inflation concerns as largely transitory. The ASX 200 added 1.5% today and closed 7342.2 points. Among the top performers were the Energy, Real Estate and Financials sectors as the banks made up some of the losses from yesterday’s disaster of a session that resulted in the worst trading day in 2021 for the Aussie Banks.
This up and down and lack of momentum indicates that markets are still unsure as to what to expect from the Fed when it comes to interest rates and curbing inflation. Among the stocks, Pilbara Minerals, Rebel Sport, and Pointsbet were the top performers with 7.4%, 6.8%, and 6.5% gains, respectively. Whereas, Nufarm, Westgold Resources, Appen ended the day in the red. Nuix was once involved in the news as the stock price tumbled once again to $2.62 a share, just 3 cents off its lowest ever price.
The volatility in the markets does give rise to opportunities for investors across a variety of time frames and here are our picks for the stocks that are worth looking out for.
ANZ is an Australian multinational banking and financial services company that operates in 33 markets globally with representation in Australia, New Zealand, Asia, Pacific, Europe, America and the Middle East. Coming off an extremely difficult year for the banks and investors in banks with dividends being cut, ANZ’s interim dividend for 2021 was 70 cents per share. The company’s strong earnings, improving environmental conditions and a combination of their strong capital management has given them the confidence to pay this interim dividend. In H1FY21, ANZ’s statutory profit after tax was up by 45% at $2.9mn, driven by a net credit provision release of $491mn. The company has not faced any large credit losses due to the pandemic, in fact they have $4.3bn in their reserve if conditions deteriorate. The company’s capital position and strong balance sheet gives them the flexibility to return surplus capital to shareholders.
With low interest rates continuing to offer favourable operating environments, the run for the banks does not look like it’s over yet, and ANZ is one stock that fits into most investor portfolios. Erasing some of yesterday’s losses, ANZ shares finished in the green today with a 2.14% increase and closed at $28.68 a share.
Much like the job market in Australia, Seek shares have been in an uptrend since late last year, albeit with a few troughs. Melbourne based Seek engages in the provision of online employment classifieds, education and training services. It operates through the following segments: SEEK Asia Pacific and Americas; SEEK Investments; and Corporate Costs. The SEEK Asia Pacific and Americas segment comprises SEEK ANZ, SEEK Asia, Brasil Online, OCC and AP&A Other, and other businesses. The SEEK Investments segment consists of Zhaopin, Online Education Services and Early Stage Ventures.
Seek has been performing extremely well as of late. The company reported favourable operating conditions and upgraded its full year guidance earlier this quarter. They have also reduced their stake in Zhaopin by diluting from 61% holding to 23.5% and the CEO advised that these proceeds will be paid out as dividends to shareholders. High levels of hiring activity amid a recovery from the pandemic has Seek operating in full swing and it has underpinned the share price action as well and these tailwinds are set to continue for the medium to long term horizon, making SEK shars one to consider for investor portfolios. SEK shares closed at $33 a share today. close to its all time highs.
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