ASX market overview

Over the past couple of weeks, the market has become more buoyant, the All Ordinaries (XAO) has risen 1.51%; the S&P ASX 100 has risen 1.29%. This is the second straight week of gains; however, the market is still down 10.3% from January’s high.

Banks appear to have stabilised during the past two weeks with NAB rising 5.3% to $31.60 and ANZ up 5.54% at $23.25. Resources, on the other hand, are finding things a little tougher. Newcrest Mining Ltd has dropped 9.7% to $28.30 and Zinifex Ltd shed 4.25%% to $9.91.

The performance of the sectors has generally been positive over the past two weeks. Energy, Financials, Telecommunications and Utilities continue to move upward.  After negative returns the previous two weeks, Consumer Staples (-3.61%) and Industrials (-6.51%) have made a positive turnaround. Consumer Discretionary has slowed in its negative run, falling only -0.81% compared to a fall of -8.70% the two weeks prior.  Materials, Healthcare and Information Technology have dropped slightly. 

At this time of year, a lot of commentators are talking about the Federal Government budget. The budget will be delivered on May 13. Changes in government policies can often have an effect on the health of the market overall as well as individual sectors.