The ASX200 seesaws while Speedcast rises 5.83% and InvoCare declines 6.11%
The ASX200 swung during morning and afternoon trade as investors seemingly couldn’t decide between bullish or bearish sentiment.
The ASX200 spent most of today's trading session seesawing between gains and losses. At the time of writing, the blue-chip index was down 17.1 points.
Some companies avoided this volatility: Speedcast and Wisetech Global Limited both saw impressive gains, rising as much as 5.83% and 3.94%, respectively. Other companies struggled, with Invocare posting the largest declines of the day – down as much as 6.11%.
ASX200: what’s behind this recent price action
Commenting on the ASX200’s recent price movements, IG’s market analyst Kyle Rodda today pointed out that in the last week, the market has mostly been middling:
‘Tracking overseas leads and only really rallying in the back end of last week courtesy of Fed-member John Williams’ communications-gaff' concerning interest rates.
Speedcast (ASX: SDA) gets a vote of confidence
Beaten-down shares in SpeedCast International Ltd rose as much as 5.83% today following news that Norges Bank had taken a significant stake in the company.
In saying that, Speedcast’s share price is still down over 40% in the last month, following an announcement to shareholders that full-year earnings would be some 12% lower than previously expected.
While Norges Bank’s large position certainly ranks as a positive, given Speedcast’s weakened outlook, it will be telling to see if the stock can maintain this kind of momentum going forward.
Invocare (ASX: IVC) falls flat
With an acquisition announcement released last Friday, the share price of funeral operator Invocare Ltd surprisingly fell as much as 6.11% during today's session. This was surprising due to the fact that the company has delivered impressive growth off the back of an acquisition-focused strategy for some time now.
To further confound the matter, both Citi and Macquarie analysts recently raised their price-target on the company’s stock by 1.9% and 14% respectively.
Even still, Invocare's share price is up 58% year-to-date.
Pullback could go deeper still
Today’s mixed results ultimately seems to speak to the uncertainties that continues to plague markets across the globe.
Speaking of the ASX200's outlook going forward, IG’s market analyst, Kyle Rodda concluded that:
‘Though the trend remains to the upside, momentum has waned for the ASX200, suggesting its recent pullback has the capacity to run further.’
Regardless of all this, investors would do well to remember that the ASX200 has performed outstandingly in the last six months – rising 20.6% and even outpacing the gains witnessed by the S&P500 in that same period.
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