Australia’s sharemarket has experienced a significant surge, driven by a wave of “buy-the-dip” momentum, particularly among retail traders. This has provided a much-needed boost to several heavily sold-down stocks on the domestic bourse. Logistics software giant WiseTech Global has been a standout, jumping 30 per cent in just two weeks following allegations concerning its founder. WiseTech Global develops and provides software solutions for the global logistics industry, helping businesses manage freight, customs, and more. The stock rose 5.7 per cent on Tuesday to $37.37 after founder Richard White stepped down as chairman but continued as chief innovation officer. WiseTech was the third-most traded stock last week on CommSec, with Raymond Azizi from CMC Markets noting a shift towards “chasing second chances” in quality companies.
The S&P/ASX 200 Index’s winter resurgence has been largely propelled by the healthcare sector, which recorded a ninth-straight day of gains on Tuesday, now up nearly 20 per cent over the past month. Leading this recovery is blood plasma maker CSL, whose shares, just weeks ago, traded near a decade-low of $90. CSL is a global biotechnology company that develops and manufactures products to treat rare and serious medical conditions. Its shares have surged 35 per cent since June 3, closing at $123.97 on Tuesday, and topped CommSec’s list of popular retail trades. Other rallying names include ResMed and Cochlear, both bouncing around 20 per cent, and cancer diagnostics supplier Telix Pharmaceuticals, up nearly 40 per cent.
While other sectors like consumer discretionary, featuring Aristocrat Leisure and Wesfarmers, and tech giant Xero, have also seen gains, experts offer mixed views. Seneca portfolio manager Luke Laretive warned that lung imaging software company 4DMedical traded at a “stratospheric” valuation. Jun Bei Liu of Ten Cap sees ResMed as a strong buy due to its attractive valuation and growth, but cautioned that the market had become too optimistic about CSL and Cochlear. Alphinity’s Elfreda Jonker reinforced this, stating that for several rallying stocks, including CSL, Cochlear, 4DMedical, and WiseTech, the market is “pricing in an improvement that hasn’t shown up in earnings yet.”
